New York and New Jersey suffers worst downturn since World War II

Date: Wednesday, August 5, 2020
Source: Port Technology

New York and New Jersey suffers worst downturn since World War II

The Port Authority of New York and New Jersey has lost $800 million in revenue since March as a result of the COVID-19 pandemic, according to its financial results for the first half of 2020.

In a statement, the Port Authority said it had lost on average $240 million in revenue a month since March, a figure it described as “unprecedented”, and that it expects to lose $3 billion by March 2022.

The Port Authority, which oversees maritime, rail and aviation cargo and passenger traffic, said it has seen a collapse in activity in many areas of its operations.

It has kept its facilities open throughout the crisis, even during the peak in mid-April 2020 and has identified approximately $200 million in operating savings from the 2020 Budget.

Additionally, it said it is examining “operating costs including potential incremental costs necessary to address COVID-19 operating protocols as activity increases.”

“Due to the global pandemic, Port Authority revenues were down nearly $800 million just through June of this year – an unprecedented number for this agency,” said Chairman Kevin O’Toole.

“This region has been hard hit by the pandemic, and the Port Authority was not immune. Without federal assistance, the Port Authority and the region will be forced to feel the weight of this loss for years to come.”

“The Port Authority’s second quarter financial performance is the worst downturn in the Port Authority’s recent history – perhaps in its entire history, and certainly since World War II,” said Executive Director, Rick Cotton.

“This decline was completely driven by revenue losses resulting from the precipitous decline in volumes at the agency’s facilities across the region. We continue to tirelessly advocate for federal aid to offset the damage that the revenue loss will inflict on the agency’s Capital Plan.”

In July 2020 the Port Authority requested $3 billion in federal aid to compensate for the expected losses incurred as a result of the COVID-19 pandemic.

Read from original source.

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