Financial Closure Today Marks Approval of Required Financing Arrangements for First Phase of the Project
Lease Approved by the Port Authority Board of Commissioners in December
New Terminal One Received Final Environmental Approval from the Federal Aviation Administration
Port Authority Board of Commissioners Approved a New Lead Investor in the New Terminal One
Will Be Largest Terminal at JFK Airport When Complete and Will Create 10,000 Jobs, Including 6,000 Construction Jobs
Governor Kathy Hochul today announced that construction of a $9.5 billion, world-class New Terminal One at JFK International Airport will move forward this summer now that financial and environmental approvals have been secured, including today’s financial close for the first phase of the project.
“The construction of this new state-of-the-art terminal at JFK is key to our vision for a new era in New York,” Governor Hochul said. “This transformative project is moving forward full steam ahead and when complete will provide for a passenger experience that serves as a model for the unparalleled potential of New York. Congratulations and thank you to everyone who has put in the years of hard work to make this project possible.”
In December, Governor Hochul announced that the Port Authority’s Board of Commissioners approved an agreement with the New Terminal One consortium to build a world-class terminal that will anchor the south side of JFK Airport. Last week, the Port Authority’s Board voted to approve a new lead investor in the project. Ferrovial, a global airport operator with experience building world-class terminals, will acquire 96 percent of The Carlyle Global Infrastructure Fund’s 51-percent stake in the New Terminal One, the consortium that was selected to design, build and operate the state-of-the-art terminal.
The announcement that the New Terminal One will begin construction this summer comes just 10 days after Governor Hochul, The Port Authority and Delta Air Lines celebrated the opening of a new Terminal C at LaGuardia Airport, marking the substantial completion of a Whole New LaGuardia.
Port Authority Executive Director Rick Cotton said, “Today’s financial close on the first phase of the New Terminal One project at JFK Airport is an historic moment that has been five years in the making. We look forward to partnering with Ferrovial, JLC Infrastructure Group, Ullico and Carlyle to build a world-class, top-rank terminal that will be the largest international terminal at JFK and whose $9 billion dollar-plus investment will help drive the region’s recovery. We want to thank New York Governor Kathy Hochul, U.S. Senate Majority Leader Chuck Schumer, Deputy Secretary Polly Trottenberg of the U.S. Department of Transportation, U.S. Congressman Gregory Meeks, Queens Borough President Donovan Richards, and the leadership and staff of the Federal Aviation Administration in Washington, in Region 2, and at JFK Airport. Without their support, getting this important project to financial close today would not have been possible.”
Port Authority Chairman Kevin O’Toole said, “With a new LaGuardia Airport substantially complete and a new Terminal A at Newark Liberty Airport nearing completion, today’s announcement about moving forward with a New Terminal One at JFK is another demonstration of the Port Authority’s commitment to creating world-class airports for our region. The unprecedented level of investment by our private partners is a vote of confidence in the future of our region and our ability to take on and complete extraordinary projects that will serve as an inspiration for generations to come.”
JFK’s New Terminal One will be built on sites now occupied by Terminal 1, Terminal 2 and the former Terminal 3, where it will anchor JFK’s south side. At 2.4 million square feet, the new terminal will be the largest terminal at JFK when complete – nearly the same size as the new LaGuardia Airport’s two new terminals combined. Construction of the new terminal will take place in phases. The first phase, including the new arrivals and departures hall and first set of new gates, is expected to open in 2026.
After completion of all three phases in 2030, the New Terminal One will have 23 gates as well as bright and airy check-in halls and arrival spaces designed to enhance the customer experience and compete with some of the highest-rated airport terminals in the world. Customers will enjoy world-class, New York-inspired dining and retail amenities, as well as space for lounges, an indoor green space and family-friendly amenities. The New Terminal One will incorporate the latest advances in both sustainability and security and be infused a with uniquely New York sense of place.
Luke Bugeja, Chief Executive Officer of Ferrovial Airports said, “We are honored to partner with the Port Authority of NYNJ, JLC Infrastructure, Ullico, and Carlyle to bring a world-class airport terminal to life at John F. Kennedy Airport. This transformative project will delight travelers and deliver the intended benefits to the community of one of the world’s most popular and important destinations and international gateways to and from the United States”
Dr. Gerrard P. Bushell, President and Chief Executive Officer of The New Terminal One said, “I am excited to welcome Ferrovial to the New Terminal One consortium as the lead sponsor. Ferrovial is a critical partner that brings great expertise and experience as a world-class airport developer and operator that will further the capabilities of this project as it expands the notion of what is possible when it comes to the impact of infrastructure projects. From MWBE participation to local workforce development to sustainability enhancements, the New Terminal One project will have a ripple effect for generations to come.”
Gary LaBarbera, President of the Building and Construction Trades Council of Greater New York said, “The plan to build a new Terminal One at JFK International Airport represents yet another critical, large-scale infrastructure project that will fuel New York’s economic recovery and create thousands of middle-class careers with benefits in the process. More than ever, we need public works projects that create opportunity for our city’s working people, and we thank Governor Hochul for her continued leadership and laser-focus in ensuring that job-generating projects lead the way to a new era in New York. Our members look forward to continuing to work toward fully modernizing JFK International Airport into a world-class transportation hub worthy of the Empire State.”
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, and is expected to begin construction by the end of this year. The $1.5 billion expansion of Terminal 4, led by Delta 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, set to be demolished to make way for the new Terminal 6.
Combined, the projects represent an $18 billion transformation of JFK International and an extraordinary public-private partnership. 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.
Construction of the New Terminal One will create at least 10,000 jobs, including 6,000 construction jobs. Ferrovial and its partners at the New Terminal One are also committed to the Port Authority goal of 30-percent participation by Minority- and Women-Owned Businesses and a strong focus on developing local businesses.
Ferrovial has been part of the aviation industry since 1998 and has more than 20 years of experience investing, developing, and operating 33 airports around the world, including the United States, Australia, and Chile. It currently has four airports in the United Kingdom. With a 25 percent stake in Heathrow Airport, it is the airport’s core shareholder and industrial partner, and it owns 50 percent of Glasgow, Aberdeen, and Southampton airports. It is also in the process of closing the acquisition of 60 percent of Dalaman International Airport in Turkey from YDA Group.
Ferrovial has a deep understanding of the aviation and travel segments and a strong track record of building productive relationships with partners, local leaders, and the community. Ferrovial will complement and add to the impressive work done by NTO and the Port Authority to date. The company has been part of the aviation industry since 1998 and has more than 20 years of experience investing, developing, and operating 33 airports around the world, including the United States, Europe, the United Kingdom, Australia, and Chile.
Forrovial currently has four airports in the United Kingdom. With a 25 percent stake in Heathrow Airport, it is the airport’s core shareholder and industrial partner, and it owns 50 percent of Glasgow, Aberdeen, and Southampton airports. In 2020, Ferrovial Airports set up the Ferrovial Vertiports business, with the objective of designing, building and operating the infrastructure required for the operations of eVTOL (electric Vertical Take-Off and Landing) aircrafts. Ferrovial Airports is also in the process of closing the acquisition of 60 percent of Dalaman International Airport in Turkey from YDA Group.
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.