Construction of A $9.5 Billion New Terminal One at JFK Airport Will Begin This Summer
Construction
In December, 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.
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.
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.