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During its Dec. 14 meeting, the Port Authority of New York and New Jersey board of commissioners approved the agency’s $9.3 billion budget for 2024.

The clearance followed a month-long public comment period for the spending plan, which includes $3.9 billion in operating expenses, $3.6 billion in capital expenses, and $1.8 billion for debt service and deferred expenses.

Officials say the budget reflects the agency’s commitment to modern, secure facilities and continuing the post-pandemic recovery with investments that prioritize a safe, seamless travel experience while enabling economic growth and development across the region, as well as the reality of still-elevated inflation levels that have increased costs and triggered some automatic rate increases.

The Port Authority says that an automatic inflation-based rate increase of $0.63 will begin at the bridges and tunnels on Jan. 7, 2024, as well as an AirTrain fare increase of $0.25 that begins March 3, 2024. Officials note the upticks are the result of the consumer price index increase 3.7% from September 2022 through September 2023.

Some toplines of the budget and capital projects it supports include:

• Continued planning and advancing of the new Midtown Bus Terminal.
• Replacement of PATH’s current fare collection system with a new tap-and-go system.
• Development of the new AirTrain Newark system to replace the current outmoded system, as well as advancement of the Newark Liberty International Airport station access project – expanding rail and airport access for underserved Newark and Elizabeth communities.
• Continuation of work on the $2 billion, 11-part project Restoring the George program at the George Washington Bridge.
• Beginning of major work on the Port Street Corridor Improvement project at Port Newark.
• Nearly $1 billion in funding allocated toward safety and security, strengthening cybersecurity efforts.
• $86 million toward net-zero initiatives and more than $220 million to expand resiliency and flood mitigation measures.
• $219 million for systems and technology supporting innovation, as well as $3 million to support the agency’s innovation hub, which NJBIZ has extensively reported on.

“As we emerge from a few years of uncertainty, we’re now more certain than ever about advancing our transformational plans and our core mission: moving people and goods safely and efficiently,” said Port Authority Chairman Kevin O’Toole. “That mission is borne out in this budget with record security funding, along with billions set aside to drive forward our work rebuilding, modernizing, and enhancing our region’s transportation network.”

Port Authority Executive Director Rick Cotton says that everyone who makes use of Port Authority facilities will see funding set aside to improve their experience in this spending plan.

“With travel activity rebounding across the region, we are returning to pre-COVID spending levels and are aggressively moving ahead on a multitude of substantial projects,” said Cotton.

It glides as softly as a cloud

One of those projects noted above is the AirTrain replacement at Newark Liberty International Airport — work that will replace the current outmoded system with a modern, reliable 2.5-mile automated people mover train system that is slated to open in 2029. The Port Authority also announced Thursday it selected Doppelmayr, a market leader in cable-propelled transport systems, in the first phase of a multiphase procurement process for that project.

Officials say Doppelmayr will play a key role in developing the new system. The contract includes $570 million for design and construction, with an estimated $385 million over 20 years (net present value) for operation and maintenance of the system and its vehicles.

The agency says that Doppelmayr was selected following a rigorous review process that included a Request for Qualifications issued last December and a Request for Proposals that was put out this past March. Doppelmayr has committed to making good-faith efforts to meet certain benchmarks in terms of hiring minority-owned, women-owned, service-disabled, veteran-owned and locally owned business enterprises, which the Port Authority says continues its mandate to create equitable economic opportunities at its major capital projects.

In addition to design, construction, operation and maintenance of the automated people mover system and its vehicles, this first procurement phase also includes the furnishing, delivery, installation, testing and commissioning of the system technology components.

“Doppelmayr is proud to partner with the Port Authority of New York and New Jersey for the development of the new AirTrain Newark,” Markus Schrenttewein, president of Doppelmayr Cable Car America Inc., said in a press release, noting similar projects it has developed in Oakland and Las Vegas. “For AirTrain Newark, Doppelmayr will place a special emphasis on creating value for the local community.”

O’Toole describes this as a critical step in the wide-ranging efforts to revitalize and modernize Newark airport.

“Given Doppelmayr’s experience and expertise, we know the firm will be a great partner in bringing our travelers the reliable, efficient transportation they deserve, surrounded by world-class terminals and amenities,” said O’Toole.

“We are committed to driving this critical project forward, and this multi-step procurement process does it in a way that’s manageable and encourages competition,” said Cotton. “The selection of Doppelmayr underscores our determination to deliver travelers a world-class customer experience at our airports, including modern, reliable mass transit options.”

Gov. Phil Murphy said that this next step in advancing the AirTrain replacement project further builds on the efforts to transform Newark Liberty into “the modern world-class airport our region deserves.”

“This project marks a massive win-win not only for the tens of thousands of passengers who utilize AirTrain Newark daily but for our residents in adjacent communities as well,” said Murphy. “While the revamped AirTrain will improve efficiency and connectivity at Newark Liberty, the project will also promote workforce development opportunities and good-paying local jobs, including for minority- and women-owned businesses.”