Newark Liberty's $2.4B Terminal A Project Moves to the Next Phase

The Port Authority announced May 18, the issuance of requests for proposals (RFP) to three private development teams for a design-build contract for the new Terminal A at Newark Liberty International Airport. 

Following a request for qualifications issued late last year, the three shortlisted teams are Skanska Walsh II, a joint venture, with HOK as lead designer; TLV Alliance, a joint venture between Turner Construction Company and Lend Lease (US) LM with Gensler as lead designer; and Tutor Perini/Parsons, a joint venture, with STV as lead designer.

The three firms -- deemed qualified after a thorough technical review that included financial capability, past project experience and safety record -- have been asked to submit proposals for the design and construction of the new Terminal A by early fall, with the selected team expected to be chosen by the end of the year.

The selected team will be expected to enter into a fixed-cost design-build contract, intended to incentivize design innovation and transfer construction risk to the development team, with delays and cost overruns being the responsibility of the developer. 

The RFP marks an important step forward in the replacement of the nearly half-century-old and undersized Terminal A with a modernized facility that meets current and future passenger needs. 

  “Last year, Newark Liberty welcomed about 40.3 million passengers -- an all-time record for the airport,” said Port Authority Chairman John Degnan. “The new terminal will address the existing terminal's functional inefficiencies, while adapting to the increasing air travel demands for technology, security and amenities that customers expect.” 

“The Terminal A project underscores the Port Authority’s commitment to the modernization of Newark Liberty Airport, along with the redevelopment efforts ongoing at LaGuardia and John F. Kennedy International airports,” Executive Director Pat Foye said. “The use of design-build for this project highlights our commitment to use project delivery mechanisms that incentivize innovative ideas and transfer project delivery risk to the private sector where it makes sense. The agency allowed its aviation facilities to fall behind the times in recent decades, but this initiative is a critical part of our recommitment to modernizing our airports.” 

The new state-of-the-art facility, replacing the current outmoded 1970s-era Terminal A, will include 33 gates, a 3,000-space parking garage and related infrastructure improvements. The new terminal is scheduled for a partial opening in 2020, with the facility fully operational in 2022. The redevelopment program, approved by the Port Authority Board of Commissioners in March, is expected to create 9,000 jobs and $600 million in wages, and generate $3.3 billion in regional economic activity.  

The new Terminal A will have the capacity to accommodate 13.6 million passengers annually, while retaining the flexibility for future growth and expansion, serve larger aircraft and meet changes in passenger demand. The current facility, opened in 1973, was designed to handle a maximum of nine million passengers per year. 

The design-build process enables the Port Authority to combine design and construction services into a single contract with a private-sector partner to expedite Terminal A construction and transfer project delivery risk.