Governor Hochul Announces Groundbreaking of $9.5 Billion New Terminal One in a Major Step Forward for Port Authority's JFK Transformation

Governor Kathy Hochul today celebrated a key milestone in the Port Authority's transformation of John F. Kennedy International Airport with the groundbreaking for a $9.5 billion, privately financed New Terminal One. The start of construction follows a revised agreement late last year between the Port Authority and the New Terminal One - a consortium of financial sponsors - to build the 2.4 million square foot, state of the art new international terminal that will anchor the south side of John F. Kennedy International Airport and create 10,000 jobs, including 6,000 jobs in construction.

"Our state-of-the-art renovations of New York State's airports are critical and long overdue - especially at JFK, the nation's front door to the world," Governor Hochul said. "The investments we are making today will ensure all New Yorkers, and the tens of millions of people who come here every year, have a first-class travel experience tomorrow - all while creating more than 10,000 jobs. Congratulations and thank you to everyone who has put in the years of hard work to make this transformative project possible."

Designed to accommodate the growing demand for international air travel, the New Terminal One will be more than twice the size of Terminal 1 and Terminal 2. Bright and airy check-in halls and arrival spaces advanced security technology and a state-of-the-art baggage handling system will enhance the passenger experience. The new Terminal One will double the number of gates that currently accommodate wide-body aircraft, with 22 of the 23 new gates designed for larger aircraft that are key to international travel.

With more than 300,000 square feet of world-class, locally inspired dining and retail concessions, as well as lounges, indoor green-space, inspiring public art, family friendly amenities and revamped roadways, the New Terminal One will provide customers the world class experience expected at a global gateway, and it will compete with some of the highest-rated airport terminals in the world.

In keeping with the Port Authority's commitment to reach net-zero greenhouse gas emissions by 2050, the Terminal will be sustainably designed and future focused, including on-site renewable energy generation, electric ground support equipment and optimized lighting and building controls.

Initially expected to break ground in 2020, the severe impact of the COVID-19 pandemic on air travel required that the Port Authority and the New Terminal One (NTO) consortium restructure the previous agreement to build and operate the new Terminal. A revised agreement was approved by the Port Authority Board of Commissioners and announced by Governor Hochul in December 2021, enabling the project to move forward.

In June, the Port Authority's Board also voted to approve a new lead investor in the project. Ferrovial, a global airport operator with experience building world-class terminals, acquired 96 percent of The Carlyle Global Infrastructure Fund's 51-percent stake in the New Terminal One. The consortium, which also includes the financial partners ULLICO and JLC Infrastructure, will design, build and operate the state-of-the-art terminal.

The entire cost of the Terminal will be privately financed by the NTO consortium. The Port Authority will undertake infrastructure upgrades and improvements including roads, parking and utilities, including a new electrical substation as part of the project. The project will be built in phases, with the arrivals and departures hall and 14 new gates opening in 2026 and completion of the Terminal's final nine gates in 2030

The New Terminal One will be built on the sites of the current undersized and outdated Terminal 1, the aging and obsolete 60-year-old Terminal 2 and the site of the former Terminal 3, which was demolished in 2014. In order to maintain full flight operations during construction, demolition of old structures will be coordinated with the opening of new facilities. Work will begin at the vacant Terminal 3 site. Terminal 2 will be demolished after Delta Air Lines consolidates its operations at a newly expanded and modernized Terminal 4 in 2023. The current Terminal 1 will be torn down after the first phase of the New Terminal One is completed in 2026, allowing the second phase of the project to move forward.

Port Authority Chairman Kevin O'Toole said, "Today's groundbreaking for a New Terminal One represents a significant step toward ensuring that our region remains the nation's gateway to the world. When completed, this new terminal will represent another crucial step into refashioning our airports into soaring spaces that deliver passengers a world-class experience in a sustainable way while serving as economic engines for the surrounding community."

Port Authority Executive Director Rick Cotton said, "The new Terminal One project represents the biggest and boldest public-private partnership in the history of Port Authority airports, involving the commitment of $9.5 billion of private investment, all brought to the table by private investors with faith in New York, faith in the region and faith in the future of JFK International Airport. Our explicit goal is to build one of the top 10 airline terminals in the world, and with today's groundbreaking for a world-class New Terminal One, JFK is on course to become a global gateway that the region deserves."

Port Authority Vice Chairman Jeffrey Lynford said, "Not only is JFK International Airport the nation's busiest for international travel, creating vital links to the rest of the world, it is also an important economic engine for our entire region. Today's groundbreaking for a New Terminal One is an important step forward in the transformation of JFK into a world-class global gateway that will continue to drive our region's economic growth and create thousands of good paying jobs. The Port Authority's program to transform the region's airports into world-class gateways will play a critical role in our efforts to recover from the pandemic and build the foundation for the future."

Dr. Gerrard P. Bushell, Chief Executive Officer of The New Terminal One said, "When it is complete, this project will bring a world-class terminal that is sustainably designed and future focused, and a new gateway to the world's greatest city. Through our extensive partnerships with the community and labor, we will drive historically high MWBE participation goals, and deliver jobs and real economic opportunity for this community for generations to come."

Building and Construction Trades Council of Greater New York President Gary LaBarbera said, "Today's groundbreaking on a new Terminal One at JFK International Airport represents the start of another critical, large-scale infrastructure upgrade that will play a crucial role in New York's continued economic recovery and create thousands of good paying, middle class careers with benefits. Now more than ever, we need development projects that create sustainable career opportunities for our city's working people, and we thank Governor Hochul for her continued leadership and steadfast dedication to ensuring that these job-generating projects are the gateway to a new era in New York. Our members are at the ready and look forward to ramping up their work fully modernizing JFK International Airport into the exemplary, world- class transportation hub that New Yorkers, and our visitors, truly deserve."

Transforming JFK Into a World-Class Global Gateway

The New Terminal One builds on the momentum of the other three major components of the airport's transformation. The $3.9 billion development of a state-of-the-art new Terminal 6, to be built by JFK Millennium Partners, on the airport's north side that will seamlessly connect with JetBlue's existing Terminal 5 and was approved by the Port Authority Board of Commissioners in August, 2021. The $1.5 billion expansion of Terminal 4, led by Delta Air Lines and JFK International Air Terminal, was approved in the spring and is now under construction. Additionally, work began in December 2019 on the $425 million expansion of JFK's Terminal 8, led by American Airlines, which operates the Terminal, and British Airways, which will be relocating to Terminal 8 from Terminal 7, once the project is completed by the end of this year.

Combined, the privately financed terminal projects combined with the Port Authority's roadway, parking and infrastructure projects represent an $18 billion transformation of JFK International and an extraordinary series of public-private partnerships. The Port Authority capital investment of $2.9 billion is leveraging private investment at a rate of more than five to one when taking into account the full private investment of more than $15 billion that has been committed to the four projects comprising the full JFK redevelopment program.

Representative Gregory Meeks said, "The construction of The New Terminal One at JFK demonstrates how modernizing key transportation hubs while centering community needs and passenger experience are critical to the economic growth of a region. The billions of dollars invested in this transformative project will create thousands of good jobs and MWBE and local contracting opportunities among other benefits. As Co-Chair of Community Advisory Council, I look forward to continuing to work with all of our partners to realize the robust workforce development programs, business development opportunities, educational programs and environmental sustainability commitments for the neighborhoods surrounding JFK."

State Senator Leroy Comrie said, "JFK Airport serves as a vital gateway, linking the world to our region. This groundbreaking demonstrates New York's commitment to improving and investing in a JFK that can meet the future transportation needs of the tri-state area. I am grateful for the leadership of Governor Hochul, the diligent work of the Port Authority, and all who are participating in crafting this new era of excellence for JFK."

State Senator Joseph P. Addabbo, Jr. said, "The groundbreaking of the new Terminal One at John F. Kennedy International Airport is a big step towards the future for New York. By making these vital investments into our infrastructure we are letting New Yorkers and visitors know that we are committed to creating an improved experience for them when traveling to and from our state by creating a more efficient airport. This project will create thousands of new jobs, including union construction jobs, as well as additional job opportunities when the Terminal is open."

State Senator James Sanders, Jr. said, "Even as we work out a Community Benefits Agreement, we applaud the progress so far. JFK's Terminal 1 will address safety, efficiency and usability making travel a better, more pleasurable, experience for residents and visitors, and bring this gateway to the forefront of the modern era."

Assemblymember Stacey Pheffer Amato said, "The groundbreaking of Terminal One shows our State's clear goal of providing new jobs and a strong economic opportunity for workers, all while being environmentally responsible. Through this investment, and a dedicated commitment by our State, we are bringing job growth to South Queens, and JFK into the 21st Century by ensuring that our airport is operating and using the most modern and energy efficient technology available. This is a testament to our community, our State and the people of New York."

Assemblymember Alicia Hyndman said, "This is an exciting milestone for JFK Airport. As the JFK Terminal One project will certainly expand the services of the airport, it will also create more jobs for individuals and businesses to secure. It is imperative to require and provide quality trainings while constructing this new terminal and prepare employees to communicate with customers to experience this positive transition. Ultimately, I am convinced that the New Terminal One (NTO) will be considered as the new standard of airport terminals and will be designed to accommodate passengers to their comfort."

Assemblymember Michaelle C. Solages said, "Today, we celebrate a significant milestone in the redevelopment of the JFK International Airport. With the completion of the Terminal One project, we are moving closer to meeting the demands of 21st Century travel. I applaud Governor Hochul, labor, and all the stakeholders on this outstanding achievement and look forward to a world-class, top-rank terminal that will be the largest international terminal at JFK."

Queens Borough President Donovan Richards Jr. said, "It's a truly historic day for Queens and for the millions of travelers we welcome to our city via Kennedy Airport, as we break ground on one of the biggest infrastructure and economic development projects in our borough's history. With the creation of at least 10,000 jobs, many of which will go to local residents, and millions of dollars in contracts to Queens businesses, the brand-new Terminal One will be an indescribably important boost to the Queens economy, the critically important aviation industry and the region as a whole. Thank you to Governor Hochul, the Port Authority and every single partner who helped make today possible."

New York City Council Speaker Adrienne Adams said, "JFK Airport is a vital gateway for the New York City metropolitan region and a key economic engine in Southeast Queens. The New Terminal One will create jobs, provide new opportunities for small businesses, and improve the passenger experience for visitors and New Yorkers. This project will also improve local roadways and infrastructure, which is critical for the advancement of the communities around the airport. As the transformation of JFK Airport moves forward, I look forward to continued partnership with all stakeholders to ensure Southeast Queens and all New Yorkers benefit from these crucial investments."

New York City Council Majority Whip Selvena N. Brooks-Powers said, "As the former Manager of External Affairs and Community Outreach for the Port Authority, I am grateful to break ground on the state-of-the-art $9.5 billion Terminal One Project, ushering in 10,000 jobs, of which 6,000 are union positions. Already an international transportation hub, JFK International Airport will truly be the fulcrum of construction jobs, MWBE entrepreneurial opportunity, and world-class transportation on the East Coast. I look forward to working with my elected colleagues to expand access to small and local MWBE businesses in southeast Queens, create scholastic opportunities for our young people and provide infrastructure opportunities through the JFK Redevelopment project."

Councilmember Nantasha Williams said, "Prior to becoming a Council Member, I worked for the JFK Redevelopment program, and it's exciting to see all the progress in spite of a global pandemic that crippled the travel industry. This project will shape the future of one of the main airports in our country. The groundbreaking of terminal one is a step toward the revitalization of this major asset. I am excited to see the progress on this project from when I was working on it and I look forward to its completion. This new state-of-the-art terminal will provide an improved experience for both residents and visitors who visit the airport. I would like to thank the Governor Hochul, Port Authority, The New Terminal One team, and everyone who has contributed to this project."

Greater Jamaica Development Corporation President and CEO Justin Rodgers said, “JFK Airport is the lifeblood of Southeast Queens and Jamaica that is responsible for so much of our economic vitality. Continued investment in JFK is by extension an investment in our area and small businesses. Thank you to Gov. Hochul and the Port Authority for creating opportunities for our community.”

Queens Chamber of Commerce President and CEO Tom Grech said, "As the oldest and largest business association in Queens, we are delighted to stand with Governor Hochul, and our friends at the Port Authority to kick off construction on this historic investment in JFK International Airport. This $9.5 billion investment to create a world-class passenger experience at Terminal 1 will provide opportunities for local MWBEs and be a tremendous boost to our region's economic recovery. We are incredibly proud of the part Queens Chamber members will play in this transformative project."

New York Tri-State Chapter of the National Association of Minority Contractors President Nayan Parikh said, "We would like to congratulate Governor Kathy Hochul on her great leadership and unwavering support of the MWBE community. Also, we'd like to compliment the Port Authority for their foresight in creating more than 10,000 jobs with a steadfast 30 percent MWBE goal. NAMC and our committed Board and members are ready to provide resources and capacity building to wholeheartedly support this impactful effort."

Quenia Abreu, President of the New York Women's Chamber of Commerce said, "We congratulate Governor Hochul and our friends at the Port Authority on this critical step towards transforming JFK. This historic investment in JFK will help create new economic opportunities for the MWBE community and our entire region, and we look forward to continue working with our partners on this critical project."

Kevin W. Alexander, President & CEO, Rockaway Development & Revitalization Corporation said, "Today is another landmark day for Queens with Governor Hochul's announcement of the $9.5B JFK Terminal Project. The Terminal One Team deserves a tremendous amount of credit for its visionary plan to consolidate and transform Terminals 1,2 and 3 but for their continued commitment to create jobs, careers and opportunities for southeastern Queens entrepreneurs and minority-owned businesses for generations to come. As Co-Chair of the JFK Advisory Council's Career & Workforce Development Committee we look forward to working with Governor Hochul, the Port Authority of NY & NJ and Terminal One in preparing our local residents to fill these job opportunities and career pathways."

Tom Wright, President and CEO of Regional Plan Association said, "RPA is pleased to see this major investment in JFK Airport, which will boost economic development and the region's competitiveness and complements the overhaul of LaGuardia and major investments in Newark Liberty airports. As we concluded in RPA's Fourth Regional Plan, our airports are the gateway to our region and vital to our continued success and prosperity. With these investments, the Port Authority continues to be a leader in public-private partnerships, which can deliver capital improvements with more certainty and serve as a model for other regional agencies. We look forward to continuing to work with our region's leaders and the Port Authority to continue restoring our systems to world class standards."

Carlo A. Scissura, Esq., President & CEO of the New York Building Congress said, "The New York Building Congress is thrilled to witness the commencement of construction on JFK's new Terminal One — and proud that our members are designing and building it. Congratulations are in order for Rick Cotton and everyone at the Port Authority for making this day a reality. Our airports are the rest of the world's gateway to the city, and essential in keeping New York a global tourism powerhouse. Governor Hochul and her administration continue to show their commitment to investing in our infrastructure and creating thousands of jobs for our workforce."

Rafael del Pino, Chairman of Ferrovial said, "We are proud to be part of the New Terminal One consortium and motivated to work with our partners and the Port Authority of New York and New Jersey to make this iconic project a success."

Jim Reynolds, Founder and Managing Partner of JLC Infrastructure said, "While we have been working on this development for quite some time, today signifies the beginning of what we set out to do. Delivering a world-class terminal, creating many jobs and opportunities and managing a good business is our aim over the next 38 years."

Ed Smith, President and CEO of Ullico Inc. said, "This is not just the largest P3 infrastructure project in America. It is a shining example of what can be accomplished with working people, their unions and business unite behind a common mission to build our nation."

Kathryn Wylde, President and CEO of the Partnership for New York City said, “This is a welcome and timely upgrade to JFK, the world’s gateway to New York. As we see a resurgence in business travel and tourism, the renovation of our airports is a crucial signal that we are ready for a new and expanded generation of economic activity.”

Redeveloping JFK Airport in Lockstep with the Local Community

In 2018, the JFK Redevelopment Community Advisory Council was formed. It is co-chaired by U.S. Representative Gregory Meeks and Queens Borough President Donovan Richards, and is composed of elected officials, community boards, business and nonprofit organizations, civic organizations, and clergy leaders from the targeted local communities of Southeast Queens, Southwest Queens, the Rockaways, and western portions of Nassau County.

Since its inception, the Council has been working with the Port Authority to expand community outreach efforts and develop community-focused programs, ensuring that this ambitious project solicits ongoing feedback from local stakeholders and provides meaningful opportunities for local businesses, MWBEs, students, and jobseekers.

This includes programming to advance the Port Authority's commitment to a 30 percent MWBE contracting goal in all categories of work, and a special focus on opportunities for local businesses across all aspects of the JFK Redevelopment program, including this terminal project, which will be built by union labor under a full project-labor agreement. Other community development initiatives prioritized by the Council focus on job opportunities and workforce development programs for local residents, small business outreach and development, and educational programming for local students.