The Real Deal New York

Port Authority puts the kibosh on selling
Red Hook Container Terminal

Eighty-acre facility will remain open for at least five years
October 18, 2018 08:40AM

Red Hook terminal at 70 Hamilton Avenue in Brooklyn (Credit: Red Hook Terminals)

The real estate dreamers hoping to unlock 80 acres of prime Brooklyn waterfront are going to have to wait a while — the Red Hook Container Terminal will remain open under Port Authority control for at least five more years.

In the deal, Port Authority agreed to pay the company operating the money-losing terminal $2.75 million per year in management fees and $1 million a year to subsidize operations.

The Port Authority lost at least $518 million keeping the terminal running from 1991 to 2016, a Crain’s report said.

The facility has seen increased cargo traffic in recent years, according to Michael Stamatis, president of Red Hook Container Terminal. He estimated that 60,000 containers will be unloaded at the terminal this year — and 30,000 will be dispatched heading elsewhere. Those volumes are similar to recent years, the report said.

The lease renewal comes after Gov. Andrew Cuomo previously floated the possibility of redeveloping the terminal.

In 2016, Chris Ward, Port Authority alum turned AECOM executive, proposed a plan to build up to 45 million square feet of residential space in Red Hook on several different sites, including the terminal. [Crain’s] — Meenal Vamburkar