Lease, Operations and Maintenance of Cargo Buildings 339 and 340 at Newark Liberty International Airport

Industry Briefing

8.19.2020

Today’s Presenters

• Raquel PintoStrategic Procurement Advisor Procurement Department

• Susan Warner-DooleyAviation Chief Commercial OfficerAviation Department

• Stephanie DominguezEWR Manager, Properties & Commercial DevelopmentAviation Department

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• Kristi Orlowski EWR Manager of Leasing Operations Aviation Department

• Carol LandonEWR Senior Property RepresentativeAviation Department

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Building 339

Building 340

Today’s Agenda Integrity Brief Overview The Opportunity Business Advantages Procurement Process Questions

Integrity Brief

Integrity Brief

• This Industry Briefing is being conducted for the purpose of providing background information only.

• During this Industry Briefing and during the question and answer opportunities, direct your question to the Strategic Procurement Advisor presenter only.

• Please note this Industry Briefing is being recorded and will be made available to others upon request and on the Port Authority’s website for on-demand viewing.

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AirportOverview

Overview of Newark Liberty International Airport (EWR)• EWR is comprised of 2,027 acres of land and

maintains three runways

• EWR is located in both the cities of Elizabeth and Newark

• EWR was the first major airport in the New York metropolitan area and is now the area's busiest hub for air travel

• EWR serves 50 carriers and over 46 million passengers annually, considered the region’s preferred international gateway

• In 2019 nearly all international air cargo shipped through the New York region

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Airport RunwaysThree Runways:

• Runway 4R/22L: 10,000 feet long by 150 feet wide

• Runway 4L/22R:11,000 feet long by 150 feet wide

• Runway 11/29:6,726 feet long-primarily used for commuter traffic

• 12 miles of 75 feet wide taxiway surface

• 1,200 flights per day (Pre-COVID)

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Building 339

Building 340Runway

11/29

Runway 4L/22R

Runway 4R/22L

Tower

Airport Terminal Facilities

Airport Terminals• Three terminals: A, B, and C• 107 gates• Terminal A 25 Gates• Terminal B 24 Gates• Terminal C 58 Gates

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Terminal ATerminal B

Terminal CTower

Air Cargo Handling Facilities• Cargo Buildings 339/340: AeroTerm currently operates, two multi-tenant cargo buildings that offer

significant modern warehouse and office space.

• United Airlines (Bldg. 344): State-of-the-art cargo handling facility that was constructed in 2001.

• FedEx Cargo Complex: Newark Regional Hub includes Buildings 347, 156 and most of 155.

• United Parcel Service (Bldg. 159): UPS recently completed construction of their modern 35,000 s. ft. new air cargo distribution facility in 2019.

• Building 157: The Port Authority Multi-Tenant Cargo Building consists of more than 100,000 sq. ft. of warehouse space and approximately 20,000 sq. ft. of raw office space on a second-floor mezzanine; aircraft parking; and employee parking.

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New Terminal 1

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AirTrain Newark

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Consolidated Rental Car Facility (ConRac)

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The Opportunity

Cargo Development Strategic Goals• Maintaining/proposing a premier International Air Cargo complex • Supporting and attracting regularly scheduled cargo airline services• Substantially increasing air cargo tonnage at EWR• Creating a long-term source of revenue for the airport and strong economic

development engine for the region• Setting governance standards of performance in operations, management and

customer service • Implementing best business practices within:

• Aeronautical facility operations, management and customer experience • Operational efficiencies• Sustainability • Latest technologies

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Opportunity Overview• Current lease for EWR Cargo Buildings

339 and 340 expires July 31, 2021

• Firm(s) to lease, operate, manage, finance and maintain air cargo buildings 339 and/or 340

• Firms may propose to lease, operate and maintain one or both of the cargo facilities

• Support and enhance growth of air cargo activity at EWR

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Building 339

Building 340

Cargo Building 339• The space of the facility is comprised of:

• Land: 1,002,700.35 SF (23.0188 Acres)• Building 339: 66,074.33 SF (1st Floor)• Truck Court Depth: 130 ft.• Ceiling Clear Height: 18-24 ft. for

warehouse bays• Drive in doors: 4 airside• Overhang truck side doors: 18• Bldg. 339 has 22 bays• Parking spaces• Office spaces• Airside Access• Current uses include: cargo handling and

office subleases

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Building 339

Cargo Buildings 340

• The space of the facility is comprised of:• Land: 1,002,700.35 SF (23.0188 Acres)• Building 340: 184,326.16 SF (1st Floor)

• Aircraft parking available behind Cargo Building 340 (Group V)

• 18 overhand truck side doors

• Bldg. 340-1 has 15 baysBldg. 340-2 has 16 baysBldg. 340-3 has 18 baysAll including ramp roll-up doors

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Building 340

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Building 339

Building 340

Responsibilities

• The programming, management, operation and maintenance of air cargo buildings 339 and/or 340

• Accommodating and providing all services that are needed by the cargo community

• Managing and maintaining the cargo complex in a manner that incorporates aircraft operations, truck operations, staging, trailer storage, customer and employee parking, and all supporting services

• Managing operations and housekeeping to provide the highest levels of customer service and operational excellence to our cargo customers

• Ensuring the highest levels of coordination with all stakeholders

• Obtaining all equity and debt necessary for the financing of the project

• Marketing and attracting tenants including those who are not currently located on-site at EWR.

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Expected of Lessees/Operators

Participation Goals• Making good faith efforts to provide for meaningful participation by MBEs, WBEs, SDVOBs, and

LBEs in all purchasing and subcontracting opportunities, including purchase of equipment, supplies and labor services• MBE: Minority Business Enterprises• WBE: Women Business Enterprises• SDVOB: Service-Disabled Veteran-Owned Small Businesses• LBE: Local Business Enterprise

• Responsible and fully committed to engaging local business enterprises during the lease term.

• Submitting a statement that the Respondent has reviewed and understands the Port Authority’s MWBE/SDVOB policy and will create opportunities to encourage in all aspects via its lease for the Cargo Buildings.

Lessee or Operator Responsibilities

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Business Advantages

Business Advantages

• Facilities located in Newark, NJ – the fourth largest metropolitan region

• Ideally located between interstate 78 and the NJ Turnpike, 3 miles south of Downtown Newark, and 9 miles west-southwest of the borough of Manhattan area.

• Close proximity to New Jersey Marine Terminals, just east of EWR

• 425-acre Central Terminal Area

• Contributes more than $33.6 billion in annual economic activity to the New York-New Jersey metropolitan region.

• Generates more than 180,000 total jobs and more than $11 billion in annual wages.

Newark Liberty International Airport

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Metrics/ Growth of Cargo Operations at EWR 2019 was record-breaking year for the Port Authority’s

airport System and experienced its tenth consecutive year of annual growth and the seventh year of record passenger totals.

825,000 tons of cargo in 2019

EWR registered an increase of nearly 500,000 passengers - a 1% increase

$11 Billion in salaries and wages

180,000 regional jobs

$33.6 Billion = Economic activity for the NY-NJ metro area

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Current Permitted Uses• Reception, sorting, temporary storage and distribution

• Loading and unloading operations in connection with moving air cargo

• Parking, storage, routine maintenance, minor repair, cleaning and servicing of aircraft

• Maintenance/ repair of mobile equipment

• Storage of aircraft parts and supplies

• Business and administrative offices, storerooms and employees’ locker rooms

• Parking of passenger automobiles

• Any other purpose or activity which the Port Authority may, from time to time, expressly authorize in advance and in writing

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Procurement Process

Purpose of REOI• The current lease for operations and maintenance with Aero Newark, LLC expires on

July 31, 2021.

• To obtain bona fide Expressions of Interest (EOIs) focused on supporting and accelerating growth of cargo related activity at EWR

• To obtain conceptual proposals and use cases for cargo buildings 339 or 340 from bona fide Respondents

• Moving forward to the Request for Proposals (RFP) phase with a pool of interested and bona fide Respondents

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Respondent Profile

• Affirmation statement that Respondent is qualified and interested in submitting a proposal in the RFP process

• An overview of your firm• Respondent contact information• Respondents conceptual proposals, use cases, and approach for air cargo

buildings 339 or 340.• Brief narrative of the Respondents relevant experience and qualifications.• An affirmation to create opportunities that encourage local business, MWBE and SDVOB,

LBE participation• Ability to comply with FAA Part 139 and all applicable environmental responsibilities• Acknowledgment of Port Authority’s Lessee Code of Ethics

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Overview of Expression of Interest

Preliminary Concepts and Use CasesRespondents should provide:• A description of the Respondent’s plan to lease any and all portions of the air cargo

buildings• Whether they are interested in Cargo Building 339, 340, or both• Proposed facility plan which may include a minimum level of Respondent capital

investment • Creative ideas for the utilization of the air cargo buildings and growth of cargo

operations at EWRCollaborative Dialogue Meetings:• Conceptual proposals and use cases will be discussed in CDMs between Port

Authority staff and the Respondent

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REOI Schedule

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Activity Date

Issue REOI August 19, 2020

REOI Questions Deadline September 1, 2020

EOI Due Date 2:00 P.M. EST on September 16, 2020

Pre-RFP Meeting with Respondents Week of September 28, 2020

Issue RFP Q3 2020

Questions?

Submitting Questions

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• To submit a question, use the Chat function in WebEx

• Select the chat icon at the bottom of your screen:

• Open the chat and submit your question to “everyone” to send it through publicly or select “Raquel Pinto (Host)” to submit your question privately

• All questions will be read aloud and answered by the Port Authority team

Thank You!