Construction starts on first phase of $10 billion Midtown Bus Terminal project

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New York Construction Report staff writer

A transformation of Manhattan’s outdated Port Authority Bus Terminal is underway as construction starts on deck-overs above Dyer Avenue — the first visible step in a $10 billion plan to replace the world’s busiest bus terminal with a modern, sustainable transportation hub.

The initial construction involves two deck structures over sunken portions of Dyer Avenue between West 37th and West 39th streets. These will serve as staging areas for buses during later phases of the terminal’s construction. Once the new terminal is complete, the decks will be converted into 3.5 acres of green public space, reconnecting parts of Midtown long disrupted by traffic and transit infrastructure.

“This is the kind of bold, forward-looking investment our region needs,” said Rick Cotton, executive director of the Port Authority of New York and New Jersey. “We are not just building a terminal — we’re building a gateway to the city and a resource for the community.”

First opened in 1950 and expanded in 1963 and 1981, the existing terminal has long struggled to meet modern transit demands. Before the pandemic, it handled over 260,000 passenger trips on an average weekday. Today, that number hovers around 205,000, with regional growth projections pushing planners to design a facility capable of handling much more by 2050.

The full project includes a new main terminal, a separate storage and staging facility, direct access ramps to the Lincoln Tunnel, retail space, and an expansive atrium. The redesigned terminal will be all-electric, aiming for net-zero emissions, and will significantly reduce bus congestion and idling on local streets.

Unlike many major infrastructure projects in New York, the redevelopment will not require taking private property. Instead, all construction will occur on land already owned by the Port Authority, stretching as far west as 11th Avenue.

Gov. Kathy Hochul called the project “a vision of modern infrastructure come to life,” while New Jersey Gov. Phil Murphy said it would create thousands of good-paying union jobs and modernize a critical piece of the region’s transit system.

“This project is long overdue and thankfully moving forward,” said Rep. Jerry Nadler, who helped secure up to $1.9 billion in federal funding through the Biden administration’s Build America Program. “A new bus terminal will reduce pollution, ease congestion, and create much-needed green space in Hell’s Kitchen.”

The Port Authority expects the deck-overs to be completed by 2028. The entire Midtown Bus Terminal project, built in phases to minimize service disruption, is slated for completion by 2032.

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