A project to replace the Midtown Bus Terminal in Manhattan received federal and city approvals—moving forward a $10 billion rebuild of the country’s largest and the world’s busiest bus terminal.

The project would replace the existing 74-year-old dilapidated facility.

 What was approved by Federal Transit Administration on Dec. 4 includes a 2.1-million-sq-ft main terminal, a bus storage and staging facility and ramps directly connected to the Lincoln Tunnel. The proposal also calls for two additional support structures on Port Authority of NY and NJ property to reduce street bus congestion and create 3.5 acres of community green space.

“The Midtown Bus Terminal is a crucial transportation hub for New York, servicing over 250,000 passenger trips on a busy weekday alone, and we are committed to" terminal transformation, New York Gov. Kathy Hochul said in a statement, adding that the project "will help us meet our projected ridership growth." 

The agency Record of Decision follows the signing in September of the project’s final environmental impact statement. The City Council unanimously approved the project in November.  Rick Cotton, Port Authority executive director, said in a statement that it now has all needed permits to move forward with construction. 

The phased project calls for the staging and bus storage facility to be built first, to serve as a temporary terminal while the existing terminal is demolished and rebuilt. The temporary terminal and new ramps are expected to be completed in 2028, and the new main terminal set to be finished in 2032.

In July, the Port Authority of New York and New Jersey Board of Commissioners authorized the first two contracts to build $271-million Dyer Avenue deck-overs to allow bus service to continue during construction of the new west side terminal. Construction on the deck-overs is anticipated to start early next year as the agency’s construction procurement for the rest of the project advances.  

Port Authority capital funding is expected to cover a significant portion of the project’s cost, in addition to federal loans, development rights and Payment’s in Lieu Of Taxes approved by the city for several potential new commercial developments including above the new bus terminal.

The new facility will improve bus service between New York and New Jersey and includes community benefits such as added capacity to allow curbside inter-city buses that currently pick up and drop off on city streets surrounding the bus terminal to be able to move their operations inside. That would minimize bus idling and circulation around local city streets and reducing congestion in and out of the Lincoln Tunnel. 

The net-zero emissions project will accommodate an all-electric bus fleet and include sustainability and resiliency measures such as onsite renewable energy, zoned heating and cooling systems, and heat recovery and reuse technology. Carlo A. Scissura, president and CEO of the New York Building Congress termed the planned hub "built for the future—state-of-the-art, sustainable, LEED certified, and future-proofed.”