Work has officially begun on a massive $10 billion project to replace the aging Port Authority Bus Terminal, marking the start of a long-awaited overhaul of the world’s busiest bus depot.
Ground was broken last week on the first phase of construction, which involves decking over the Lincoln Tunnel approach on Dyer Avenue. The platform will serve initially as a staging area for buses and later be converted into 3.5 acres of green space in the heart of Midtown.
The existing terminal, built in 1950, is often criticized for its deteriorating conditions and overcrowding. It will remain open during the multi-phase construction. The new terminal will be built entirely on Port Authority-owned land, avoiding the use of eminent domain, which serves as a key factor in gaining public and political support.
The redesigned facility will feature expanded capacity, upgraded infrastructure and follow modern environmental standards. A new five-level terminal building on 8th Avenue will accommodate 1,000 buses per hour, an increase of 400 over the current system. A separate building between 9th and 10th avenues will store up to 350 buses, removing idle coaches from city streets.
The project also includes a helix-shaped ramp to improve traffic flow between the Lincoln Tunnel and the terminal, new retail space, and an indoor atrium. All new facilities are being designed to support a fully electric bus fleet.
State and local officials, including Gov. Kathy Hochul, praised the project as a major step forward for regional transit and urban revitalization.
“A new Midtown Bus Terminal will deliver an enhanced experience for millions of riders, breathe new life into the surrounding neighborhood and ensure that this gateway to the city is one New Yorkers can be proud of for generations to come,” said Hochul of the project.
City Council approved the land-use changes with a unanimous 45-0 vote. Construction on the support facilities is scheduled to wrap by 2028. The main terminal building is expected to open in 2032.
To finance the project, the Port Authority plans to allow developers to build three commercial towers on its properties. Revenue from these developments, combined with a $1.9 billion federal loan and $2 billion in future property tax revenue, will cover much of the cost. The Port Authority will fund the rest.
Officials say the project will create 6,000 union construction jobs and position the terminal to meet travel demand through 2050.
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