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Press Release

New York Works: NYCEDC Announces Transformation of South Brooklyn Maritime Shipping Hub, Creating over 250 Jobs in the Near-Term

May 08 2018

Red Hook Container Terminal and Industry City will transform SBMT into a 21st century maritime hub with on-site facility to train local talent

City has invested over $115M to reactivate SBMT for the Sunset Park community and South Brooklyn working waterfront

SBMT reactivation is critical to Mayor de Blasio’s New York Works plan, which will create 20,000 industrial jobs over the next decade

BROOKLYN, NY—New York City Economic Development Corporation (NYCEDC) and local leaders today celebrated the Administration’s plan to reactivate the South Brooklyn Marine Terminal as a major shipping hub that will create over 250 quality jobs in the near-term, with potential for significant growth. The de Blasio Administration has selected industry leaders Red Hook Container Terminal and Industry City to operate the Sustainable South Brooklyn Marine Terminal (SSBMT), a vibrant cluster of maritime activity that will bring new industrial uses to the South Brooklyn waterfront and connect local talent to quality jobs of the future.

With a long-term lease through 2054, SSBMT will reactivate 64.5 acres of the terminal, moving over 900,000 metric tons of material annually through the port and eliminating over 11,000 truck trips a year. Specific new uses for the facility include waste paper recycling and export, the importation of lumber, salt, and aggregate material, container-on barge-operations, and project cargo, among other activity that will support local businesses, New York Harbor and the regional waterfront. Red Hook Container Terminal will serve as the terminal operator and stevedore for SSBMT.

SSBMT has committed to establishing an on-site workforce development center to connect local talent to quality maritime jobs. The center will leverage the Industry City Innovation Lab’s network of local partners, which includes CUNY City Tech, Kingsborough CC, Brooklyn Workforce Innovation (BWI), Opportunities for a Better Tomorrow (OBT), and Southwest Brooklyn Industrial Development Corporation (SBIDC).

“New York City’s working waterfront has long been a source of economic vitality, fueling industries and good-paying careers for over a century. Sustainable South Brooklyn Marine Terminal will build on that legacy to advance the future of the New York Harbor,” said NYCEDC President and CEO James Patchett. “Thanks to the vision of our local leaders and the Sunset Park Task Force, this Administration is proud to deliver a transformative maritime facility that will create new opportunities for industries, local businesses, and New Yorkers.”

“Today’s announcement of the selection of Red Hook Container Terminal group to operate the South Brooklyn Marine Terminal (SBMT), is a momentous step in the revitalization of the Brooklyn waterfront and the first step in the phased development of constructing a major deep-water container port centered at SBMT,” said U.S. Rep. Jerrold Nadler. “Anyone who has followed my career in public service knows that I have long advocated that our port must retain its position of dominance on the eastern seaboard of the United States because I believe that an active port is imperative for the economic vitality of the entire New York and New Jersey metropolitan region and New York City in particular. That is why I have been a passionate advocate and a supporter of the Port of New York and New Jersey for more than 30 years. Today’s announcement would not have been possible without the commitment of Mayor Bill de Blasio and his administration and the hard work of EDC President James Patchett and his team, I thank them for their diligence. Finally, I must acknowledge the hard work and support of my colleague Congresswoman Nydia Velazquez, Councilman Menchaca and all of the other elected officials who represent the Sunset Park waterfront, as well as key partners in labor, environmental and community organizations, each of them deserve our thanks for their advocacy in getting us to this important milestone.”

“Bringing the South Brooklyn Marine Terminal back online as a major shipping hub will mean important local environmental and economic benefits. By reducing the use of trucks for long-haul movement of freight and moving cargo across water, we can reduce emissions, while helping diminish traffic congestion on local highways and bridges,” said Rep. Nydia M. Velázquez (D-NY). SBMT can be a major part of America’s Marine Highway System. Locally, this project will mean good paying, living wage jobs both in the near-term and the long-term and also create new, on-site job training opportunities. Moreover, as SBMT serves as an anchor for locally produced, offshore wind power, this initiative will help contribute to a more sustainable future, while further fueling job growth. I will continue working with the Sunset Park Waterfront Task to ensure this project meets community needs and goals.”

"Brooklyn has a rich history in shipping and maritime commerce, and the reactivation of the South Brooklyn Marine Terminal is key to my administration's mission of reviving our working waterfront and creating hundreds of quality local jobs,” said Brooklyn Borough President Eric L. Adams. “The planned uses of this revamped industrial hub chart a course for sustainable job creation into the future, from waste paper recycling and raw material importation to workforce development and offshore wind project fabrication. The sun is rising on a new day for Sunset Park, and I look forward to working with our community every step of the way as this new vision for the terminal is realized."

“South Brooklyn Marine Terminal (SBMT) is a cornerstone of Sunset Park's maritime and industrial future. For over two years I've worked with constituents, local businesses, the NYCEDC and labor representatives to ensure SBMT's irreplaceable 72 acres are dedicated to productive maritime dependent uses," said Council Member Carlos Menchaca. "My requirements for the site include local job creation, environmental responsibility, resilience, and long-term economic benefits for Sunset Park. I am proud that local stakeholders including Community Board 7 helped form the request for proposals for SBMT’s 39 year lease. Their work with local business advocates from Southwest Brooklyn Industrial Development Corporation has resulted in the selection of a trusted local maritime operator with a strong record of successful projects and good labor practices. This long-term lease for SBMT means tens of millions of dollars will be invested in Sunset Park and hundreds of high quality jobs will be created. Notably, the terms of the contract protect the site from non-maritime uses, pay a dividend for public benefits in Sunset Park, require labor fairness and ongoing public engagement about operations at the site. Protecting and promoting manufacturing, maritime and industrial uses on the Sunset Park and Red Hook waterfronts is central to my work representing District 38. SBMT is now poised to deliver the benefits our community has defined and to sustain economic benefits for generations to come.”

"For too long, the South Brooklyn Marine Terminal has not lived up to its potential and we’re pleased to be a part of a viable plan to activate this precious site,” said Mike Stamatis President and CEO of Red Hook Container Terminal and designated operator of SSBMT. “Our partnership with Industry City and NYCEDC will transform the terminal into a vibrant cluster of industrial maritime activity over the coming decades. The reactivation of the Terminal will be a significant opportunity for the Sunset Park neighborhood creating hundreds of new jobs at the site within the first 5 years, while also promoting the growth of green infrastructure in the city.”

"The SSBMT plan delivers on the economic and community framework developed by the Sunset Park Task Force. And it represents a transformational opportunity to create jobs locally while addressing climate change regionally. Establishing a home for the emerging offshore wind industry on our working waterfront is a once-in-a-generation opportunity. And with a dedicated and trusted operator at the Red Hook Container Terminal and now in Sunset Park, we are able to more comprehensively utilize our industrial assets and plan for a resilient economic future. SBIDC is excited to help new tenants connect with local suppliers and is eager to work with our workforce development partners to help address both employment and training needs at the future maritime hub,” said Ben Margolis, Executive Director, Southwest Brooklyn Industrial Development Corporation.

Building on the range of new industrial uses and workforce development opportunities at the terminal, SSBMT also has the potential to create over 1,000 additional jobs by serving as a fabrication hub for prospective tenant Deepwater Wind, America’s leading offshore wind developer. Deepwater Wind has indicated its interest in establishing a major offshore wind jobs hub on the Brooklyn waterfront to support its South Fork Wind Farm and future projects, subject to necessary approvals.

The City has already invested over $115 million to modernize SBMT and is interested in the long-term phased development of a deep water container port in New York’s harbor. The reactivation of SBMT is a critical first step towards that goal. With reactivated industrial infrastructure and connection to the city’s freight and distribution system, SSBMT is a key component to strengthening the South Brooklyn working waterfront, and will help grow the area’s existing industrial ecosystem.

Reactivating SBMT is a major component of the de Blasio Administration’s strategy to create good industrial jobs of the future, as part of the New York Works plan. As outlined in the plan, the Administration will create 100,000 good jobs over the next ten years, 20,000 of which will be jobs in the industrial and manufacturing sectors.

In 2015, Mayor de Blasio joined federal and local officials to announce major progress in the City’s commitment to reactivating of the South Brooklyn Marine Terminal in Sunset Park as a working maritime port facility. This announcement included the U.S. Maritime Administration and U.S. Department of Transportation’s designation of as part of America’s Marine Highway System, which will make cargo operations in Southwest Brooklyn eligible for future federal support.

City Council approved a long-term Master Lease between the City and NYCEDC in 2015 to activate an industrial maritime facility at the South Brooklyn Marine Terminal. In addition to delivering new maritime industrial uses, upgraded rail connections at the site make SBMT the only marine terminal in Brooklyn, Queens, and Long Island capable of handling ocean-going vessels, barges and rail on the east side of New York Harbor.

The de Blasio Administration convened the Sunset Park Task Force, comprised of local elected officials and community stakeholders, to develop a vision for the facility to strengthen local businesses, create accessible job opportunities, and limit environmental impacts. SSBMT’s plan delivers on the community’s vision by bringing modern industrial uses to the terminal, while limiting environmental impact, and creating a robust workforce development system to train and connect local talent to new jobs.

SSBMT will build on the ecosystem of industrial assets in Sunset Park. Between the Brooklyn Army Terminal, The Made in NY Campus at Bush Terminal and the Brooklyn Wholesale Meat Market, this ecosystem currently includes 4.2 million square feet of leasable space and is home to more than 165 companies that provide approximately 5,000 permanent jobs.

New York City Economic Development Corporation creates shared prosperity across New York City’s five boroughs by strengthening neighborhoods and creating good jobs. NYCEDC works with and for communities to provide them with the resources they need to thrive, and we invest in projects that increase sustainability, support job growth, develop talent, and spark innovation to strengthen the City’s competitive advantage. To learn more about our work and initiatives, please visit us on Facebook, Twitter, or Instagram.