The meltdown currently going on at Newark Liberty International Airport — one that has led to thousands of lengthy delays and cancellations in the last week due to outdated technology and shortages of air traffic controllers — has everyone searching for solutions.
On Monday, Gov. Phil Murphy called for “urgent” investment from the federal government.
But is there an additional option for the long term — one that can be found just over 100 miles away in Atlantic City?
Some government and business leaders are talking about the decades-old dream of dramatically expanding Atlantic City International Airport, transforming it from a small, regional airport with very limited commercial traffic to one that could use its adequate space to lure Central Jersey customers away from Newark Liberty and South Jersey customers from Philadelphia International Airport.
To be sure, there are challenges, starting with the biggest: Major airports can’t pop up overnight — they need major funding to do so. But the idea is not as far-fetched as it may seem.
The region has the growing population and economic base needed to justify the project. And the idea has powerful leaders behind it, including South Jersey powerbroker George Norcross and Assembly Majority Leader Lou Greenwald (D-Voorhees).
Then, there’s this: An agreement authorized by both New Jersey and New York more than a decade ago gave the Port Authority of New York & New Jersey the ability to purchase an airport in both states. The Port Authority purchased Stewart Airport in Orange County, New York, more than a decade ago. It has yet to purchase an airport in New Jersey.
Greenwald told BINJE that it might be time to act.
More cargo capability coming to AC
In the fall of 2023, the South Jersey Transportation Authority announced it is partnering with California-based Industrial Realty Group on a $400-million project that will dramatically increase the cargo capabilities at Atlantic City airport.
Lauren Moore, the executive director of the Atlantic City Economic Alliance, said the project – still awaiting final environmental approvals – is gaining momentum.
“This project will be a centerpiece for Atlantic County,” Moore said. “When you’re building close to 3 million square feet, that’s transformational.”
“The Atlantic City airport is an underutilized asset that would have immediate benefits to the regional economy and to growing industry in the southern part of the state — that means new jobs, new industry around health care, which is a hallmark down in South Jersey, and obviously for tourism,” he said.
“It would be a huge boost to the South Jersey economy, as well as the ripple effects for the rest of the state.”
BINJE spoke with nearly a dozen people about the potential expansion of Atlantic City International Airport.
Is it financially feasible? Does it make sense? Would it provide any relief for Newark?
Here’s what we learned, presented in a question-and-answer format.
BINJE: Is New Jersey ‘owed’ an airport by the Port Authority?
A: As stated above, an authorized agreement called for the Port Authority to purchase two airports in addition to the four it oversaw at the time: The three major airports plus Teterboro Airport. It acquired one in New York.
A number of studies have been done over the years looking at various possibilities for New Jersey, including Atlantic City, Trenton-Mercer Airport and a few others, but no action has been taken.
BINJE: Did the studies have any definite findings?
A: No formal finding was made, but there are many reasons why many feel Atlantic City — due to its existing infrastructure (an existing passenger terminal and a large campus that can accommodate growth) — would make the most sense.
For a few years during Gov. Chris Christie’s administration, the Port Authority served in an advisory role to the South Jersey Transportation Authority (which operates the airport), providing operational guidance while gauging the potential of expanded commercial traffic.
Two things became clear: A large capital investment would be needed to build out the facilities in a way that would attract carriers. And no one was eager to make that investment.
BINJE: What type of capital investment would be needed — and would it be worth it?
A: The new Terminal A at Newark Liberty cost just under $3 billion. Let’s start at that figure. The cost of any potential project in Atlantic City could be higher or lower, depending on how extensive an upgrade was desired.
The bigger issue is this: How does money for this project compare with the need for Port Authority projects already scheduled, including Terminal B in Newark, the new bus station in Manhattan and, of course, the Gateway Tunnel project?
BINJE: Why not just spend that money to upgrade Newark Liberty?
A: Plenty of money will be spent at Newark Liberty. An upgrade in technology, facilities and workforce is desperately needed. But, even when those updates are made, Newark Liberty still will have capacity issues. The airport already is overscheduled, which causes delays even when the weather is good, and there is no room to increase the runway space.
BINJE: Would expanding Atlantic City have any impact on Newark Liberty, being that they are more than 100 miles apart?
A: Some say ‘No’ — and that an expanded Atlantic City airport would more likely attract travelers who now use Philadelphia International. Others feel that, if the on-time performance were better, a new-and-improved Atlantic City airport would attract plenty of Central Jersey travelers. You have to expand it to find out.
BINJE: And, finally, is there any chance this will happen anytime soon?
A: Not likely. The Port Authority certainly discusses all possibilities, but it has yet to determine if it wants to acquire an airport in New Jersey. It also has yet to determine which airport it would be. And there’s no indication the Governor’s Office is pushing for the project, either.
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South Jersey leaders will keep pushing for an expansion. Greenwald said patience comes with the territory.
“Everything that we’ve ever done in South Jersey has started with conversations and a long debate around opportunity and upside,” he said, pointing to the push to bring more health care to the region, noting MD Anderson Cancer Center at Cooper in Camden. “We have many historical opportunities and success stories that we can point to that kind of have begun much the way this one does.”
Business leaders support project
Saying it would be a huge economic boost for the entire South Jersey region, numerous business leaders voiced support for a transformational expansion of Atlantic City International Airport.
Norcross, one of the most vocal advocates, spoke of his desire for an expansion of the airport during an interview with BINJE in mid-April – or before the troubles at Newark rose to the surface.
Norcross said then that expanding Atlantic City International Airport is a no-brainer – one that would have immediate impact in the region.
“The Port Authority has so much power that they can snap their fingers and tell airlines, ‘Congratulations, you’re flying to Atlantic City now, and you’re going to move in and out of there,’” he said.
“Now, the South Jersey Transportation Authority has to pay tribute fees to these airlines to get them to fly in and out. That’s absurd. So, why would you have an airport under a separate authority that has no power, when it could be at the Port Authority? It still amazes me why they haven’t done it.”
And, while the decision ultimately lies with the Port Authority, Greenwald is hopeful Murphy will make a push for an expanded Atlantic City airport before he leaves office at the end of the year. Greenwald feels it could be a legacy play for a governor who has been good for the region.
“Gov. Murphy has been a huge advocate for South Jersey, has partnered with our leadership incredibly well, shares our vision and likes working with us because we get things done,” he said.
Greenwald said the same benefits would await the next governor.
“I think this is a really good opportunity for any new, incoming administration,” he said. “This is an early opportunity to invest in what I think could be a foundational piece for New Jersey.”
