Press Release: NYS, September 11, 2000

Governor George E. Pataki today announced $750,000 to improve rail access and create and retain 200 jobs at the Port of Albany. The funds will be used to help make the Port of Albany an "Inland Port" that will serve as a critical distribution point for the Port Authority of New York and New Jersey (PANYNJ).

"This project will allow the Port of Albany to dramatically expand its operations, providing a solid boost to economic development throughout Upstate New York," Governor Pataki said. "The increased commerce resulting from these improvements will help us to create and retain 200 jobs here at the Port, while also playing a key role in driving the overall economic resurgence taking hold throughout the Capital Region and across New York State."

The "Inland Port" concept involves barging containers up from the Metropolitan New York City area for warehousing and distribution from Albany. Containers will then be barged up the Hudson and routed through the Port of Albany for warehousing and rail distribution.

Projections made by PANYNJ see the potential for the Port of Albany to handle 24,000 containers by 2005. The increased port traffic would retain the jobs of 120 workers currently employed loading and unloading vessels at the port and is expected to create an additional 80 jobs over the next five years.

City of Albany Mayor Gerald Jennings said, "This funding is an exciting vote of confidence from the State of New York that will set the revitalization of the Port of Albany in motion. Refurbishing the Port's existing rail structure is one of the first steps in realizing the Port's potential as a center for intermodal transportation. I want to thank the Governor for sharing our belief in the future of the Port of Albany and its role in the overall economic growth of New York State."

Robert Boyle, Executive Director of the Port Authority of New York and New Jersey said, "The Port Authority of New York and New Jersey is one of the most critical parts of New York's transportation infrastructure, and forming partnerships like this one with the Port of Albany will allow the region and state to prosper."

Albany Port Commission Chairman Robert F. Cross said, "Because of Governor Pataki's commitment to our Port the future of this wonderful facility is becoming brighter with each passing day. With this State grant we can now take the first step to fulfill the goals outlined in the port's new Master Plan, transforming the Port of Albany into the first class marine facility we all know it can become."

Between the late 1960s and the late 1970s, almost all of the international finished goods trade converted from "breakbulk" (non-containerized) to large containers which allow for reduced port handling costs; reduced loading and unloading time; reduced losses through damage and pilferage; and most of all, the ability to move goods inter-modally, quickly and securely to inland destinations.

In addition to beginning the process of making the Port of Albany a viable candidate for the distribution of these large containers from the PANYNJ, the $750,000 in funding will be used for the rehabilitation and upgrading of approximately 2,000 linear feet of existing rail. This work, which will include the installation of new ties, ballasts, switches and drainage lines, is needed in order to off-load the containers from the barge to rail cars. The area around the rail line will then be repaved.

Demolition of an old dockside warehouse was begun in August in order to create the space needed to realign the tracks, and to provide the space needed to transfer containers. The Port of Albany Commission expects the track work to begin this fall.

"The re-equipping and rehabilitation of the existing rail infrastructure will allow the Port of Albany to develop and expand as an inland port," State Transportation Commissioner Joseph H. Boardman said. "Enhanced rail connections running east/west/north/south of Albany, will allow the Port unlimited distribution and warehousing possibilities."

The State funds are being provided from the Industrial Access Program which provides a combination of grants/interest-free loans for transportation projects that improve access and promote economic development in New York State. The program is administered by the New York State Department of Transportation.

In addition to the move toward the "Inland Port"concept , PANYNJ is working with the Port of Albany on a barge demonstration project which would involve barging cocoa to Albany. The first barge movements are tentatively scheduled for this October. Cocoa beans were imported by the Nestlé plant in Fulton, New York, through the Port from 1992 to 1997. Though the plant no longer imports cocoa through Albany, the Port has the capability to return to this market since the Port has two super sacking machines and maintains food certification for several of its warehouses.