NY transportation agency tweaks capex to spark funding for bus terminal, rail tunnel

New York

THE Port Authority of New York and New Jersey may free up US$7.5 billion by extending its capital spending plan by three years, a budget manoeuvre that could jump-start funding of a new bus terminal or rail tunnel under the Hudson River.

The transportation agency is preparing its 2017-2026 capital programme that will supplant the current plan, which ends in 2023 and provides little for the long-stalled projects. With Port Authority spending at the World Trade Center winding down, the agency will be able to spend about US$2.5 billion a year on capital projects, Moody's Investors Service analyst Earl Heffintrayer estimated.

"Obviously, the World Trade Center construction projects were a large portion of the capital plan over the last several years," said Mr Heffintrayer. "They free up US$7.5 billion just by extending the plan from 2023 to 2026, which…