PANYNJ Signs Long-Term Ground Lease for New Cargo Facility at JFK

Port Authority (PANYNJ) Signs Long-Term Ground Lease to Create New World-Class Cargo Facility at JFK

  • Modern Facility to be Developed by Aeroterm to Improve Handling of Millions of Tons of Cargo Passing Through the Airport
  • Major Step in Governor Cuomo’s Vision Plan for JFK Redevelopment
  • Expected to Create 350 Construction Jobs, 100 Permanent Jobs and Support the PA’s Goal of 30-Percent MWBE Participation
  • Project (Renderings Here) is Key to Agency’s Commitment to Growing Cargo Business Across the Region

The Port Authority of New York and New Jersey has announced the signing of a long-term ground lease agreement with Aeroterm for the development of a state-of-the-art $145 million, 350,000-square-foot cargo facility on more than 26 acres at John F. Kennedy International Airport.

The first new cargo facilities built at JFK in two decades, the Aeroterm project represents a significant step forward in the JFK Vision Plan outlined by Governor Andrew Cuomo. The project is part of a comprehensive Port Authority strategy to bring 21st-century standards to cargo operations at all of its commercial airports.

panynj cargo facility JFK
Aeroterm is the leading provider of facility-related services to airports throughout North America.

The Aeroterm project will demolish two obsolete facilities at JFK and build an expanded, best-in-class cargo facility that will incorporate advanced technology systems designed for maximum efficiency in the handling and storage of cargo, as well as a dedicated temperature-controlled area for handling pharmaceutical products.

The new facility, with its cutting-edge systems, will include greater ramp capacity to handle three of today’s large modern air cargo freighters (Group VI aircraft) simultaneously. It will also have more than 50 dock doors for the efficient transfer and tracking of goods through the facility.

Demolition of the existing facilities is scheduled to begin in September 2021, with project completion expected by the end of 2023.

Port Authority Chairman, Kevin O’Toole, said:

“This cargo modernization program is a critical step forward in the overall redevelopment of JFK airport, at a time air cargo is vital to our regional economic vitality. We look forward to working with Aeroterm to raise our cargo capabilities to state-of-the-art standards.”

Expanding opportunities for minority- and women-owned business enterprises (MWBEs) is a critical component of the Port Authority’s inclusionary contracting practices, which includes a participation goal for MWBE contractors of 30 percent. The lease requires Aeroterm to make a good faith effort to achieve a 20-percent participation goal with certified minority-owned business enterprises (MBEs) and a 10-percent goal of contracts with certified woman-owned business enterprises (WBEs). Local MWBEs will be given priority in this process and Aeroterm and its partners are committed to working with the local community to meet these objectives.

panynj JFK cargo facility
The 350,000-square-foot cargo facility will sit on more than 26 acres at John F. Kennedy International Airport.

The project anticipates the creation of 350 union construction jobs, and subcontracting opportunities for MWBEs in professional services, construction, plumbing, mechanical and electrical work. More broadly, the cargo industry at JFK supports 73,000 total jobs, $12.5 billion in sales and nearly $4.4 billion in wages.

The Port Authority and Aeroterm – the leading provider of facility-related services to airports throughout North America – are working closely with Worldwide Flight Services (WFS), the main cargo handler at JFK which is scheduled to operate exclusively out of the 350,000-square-foot facility once it is completed.

WFS Executive Vice President, Mike Simpson, said:

“In a business that is all about efficiency, a facility of this magnitude and location will see WFS use its know-how as the world’s leading cargo handler to bring the best services to all industries that depend on air freight. JFK has a major opportunity right now to expand its cargo operations, given its location and direct access to all of the major airport hubs worldwide. This new streamlined facility will be able to handle significant cargo volumes, ease cooperation between airlines operating within carrier alliances and optimize the use of technology, equipment and resource planning.”

Working with more than 270 major airlines and airports globally in the cargo and ground-handling business, WFS will bring international expertise and efficiency to the first-class facility Aeroterm is building. In 2020, 1.2 million tons of cargo were processed at JFK, putting it among the top seven airports nationwide.

Aeroterm Vice President for Development, Greg Russell, said:

“This project is a key step in revitalizing JFK’s air cargo sector, and we are proud to work alongside the visionary Port Authority executive team. Additionally, we’ve been honored by the broad support this project has received from elected officials, government, and community leaders. We look forward to kicking off this exciting project.”

This article was originally published by The Port Authority of New York and New Jersey.

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