Mayor Baraka and Deputy Mayor Baye Adofo-Wilson announced today that the City of Newark is reaching out to private entities to identify ways to maximize the use of and create revenue from the Newark Port. This morning, the City of Newark released a Request for Expressions of Interest and Information (RFEII) for Maximizing Economic Benefits from city-owned Port Newark. With an assessed value of approximately $700 million, the City of Newark believes this property has been underutilized and that there may be a possibility that a private owner will better leverage its use.
“We are looking at almost 1,000 acres of prime real estate and we want to ensure that the use of the port is maximized with the best and most profitable use for Newark and its residents,” said Mayor Baraka. “While we are not tied to any specific undertaking at this time, we are interested in the ideas that will be brought out during this process. We are especially mindful of the fact that as container traffic continues to grow, the Port will grow exponentially. This could mean tax relief for Newark citizens as well as jobs.”
The Port Newark property in question has been primarily developed for maritime uses, including container and automobile container use and bulk cargo use, among others.
“As the City progresses and witnesses burgeoning economic development, we are hoping to expand best use practices with underdeveloped areas,” added Deputy Mayor Adofo-Wilson. “There are almost 350 acres on this parcel which are not revenue-producing. A private owner – rather than the City or the Port Authority – may be the best option to allay our concerns for this property.”
The Port Newark Property was first developed by the City and then together with Newark Liberty International Airport. It has been leased by the City to the Port Authority since March 1948. The Port Newark property is serviced by significant rail assets, including the Conrail Shared Assets, CSX South Terminal Kearny Terminal, Conrail Oak Island Rail Yard, Norfolk Southern Croxton Terminal, NYNJ Greenville Yard Rail and Float, The Chemical Coast Line, The Lehigh Line, and CSX, NS and CR freight lines.
The RFEII mentions marine terminal operators and warehouse operators as well as real estate developers, property managers as prospective interested parties in this property.
The RFEII is available to Respondents at ww.ci.newark.nj.us/portauthority. An information meeting and site tour are scheduled for January 21, 2016 at 10 a.m. The location will be announced. Attendance must be confirmed to PortNewark@ci.newark.nj.us.
The City of Newark stresses that this is not a Request for Qualifications (RFQ), a Request for Proposals (RFP), nor an offer, invitation or advertisement for bids. Responses to this RFEII will not lead directly to a contractual relationship between any of the Respondents and the City. The City reserves the right to use, adopt or incorporate and recommendations presented in response to the RFEII in the development of a strategy to achieve the City’s stated objectives – to maximize the revenue capable of being derived from the Port Newark Property. The City, in its sole discretion, will subsequently determine whether to sell the property, procure a management contract or undertake any other transaction to achieve its objectives, all in accordance with applicable laws.
