The second phase of the air cargo modernization initiative is underway at JFK International Airport. Governor Andrew Cuomo announced the signing of a long-term lease with JFK Air Cargo LLC to develop a state-of-the-art handling facility on 16.2 acres of property in the airport’s North Cargo Area.
The Port Authority Board of Commissioners authorized the 31-year lease agreement Thursday in a deal that is expected to bring $152 million in rentals and a $70 million investment by JFK Air Cargo. The PA is contributing up to $13 million toward site preparation work and roadway improvements.
“New York’s nation-leading infrastructure investments are fundamentally transforming our economy, and the new JFK Airport will continue this unprecedented growth,” Cuomo said. “This new facility will generate significant economic output for the region, support thousands of good paying jobs and cement JFK Airport’s place as a national leader in air cargo operations.”
The new cargo facility is in addition to the $13 billion redevelopment of JFK announced by the governor last October which will construct two new terminals that will help create an interconnected, unified facility. The modernized JK will feature premier passenger amenities, superior security technology and improved customer service.
“The improvements the Port Authority is making to JFK’s air cargo facilities are just one part of Governor Cuomo’s bold vision for the future of the airport,” Port Authority Executive Director Rick Cotton said. “JFK has long been one of the most important destinations in the nation, for cargo as well as passengers. Today’s action continues to send a powerful message that JFK is committed to becoming a world-class operations.”
JFK handled around 1.4 million tons of cargo in 2018, making it one of the top seven airports in the U.S. is terms of cargo volume. Across the region, the overall cargo business at the airport currently supports a total of nearly 78,000 jobs, $13.1 billion in sales and an estimated $6 billion in wages. The new facility is expected to yield nearly 200,000 tons of additional cargo, 5,400 regional jobs, more than $1.8 billion in sales and an estimated $660 million in wages.
“The Port Authority strives to provide world-class facilities for our customers,” Port Authority Chairman Kevin O’Toole said. “On-airport facilities provide a competitive advantage over off-airport locations, and this new cargo facility is vital to the redevelopment of JFK.”