On Monday, the Port Authority of New York and New Jersey named a joint venture of STV and Turner Construction as construction manager for Phase 1 of the $10 billion Midtown Bus Terminal replacement. The contract amount was not disclosed.
The selection follows last summer's award to Tutor Perini for the $1.87 billion guaranteed maximum price contract to build the ramp structure and interim terminal. The STV-Turner JV will oversee that work, per Turner spokesperson Chris McFadden.
Phase 1 includes a 900,000-square-foot, seven-level interim terminal and new ramp infrastructure. The interim facility will keep bus service running for more than 200,000 daily commuters while the full terminal replacement proceeds.
The project sits in one of Manhattan's most densely trafficked areas. The construction team must coordinate demolition, new construction, and integration with existing transportation systems. New ramps will eventually lead into and out of the Lincoln Tunnel.
Phase 1 also includes the Dyer Avenue deck-overs—elevated platforms over below-grade portions of Dyer Avenue and the Lincoln Tunnel Expressway. Those deck-overs will host buses during construction and become 3.5 acres of public open space once the larger build is complete. AECOM Tishman is the construction manager for that deck-over project, with MLJ Contracting as general contractor.
Phase 2 will demolish the existing terminal, which opened in 1950, and build a new terminal on the current site. The interim terminal will then transition into a bus staging and storage facility.
STV and Turner have teamed up before on major infrastructure builds: LaGuardia Airport, the New York Police Academy, and Ruth Bader Ginsburg Hospital. That track record likely informed the Port Authority's selection.
Gus Maimis, deputy project manager for STV's program management and construction management operating group, said in the release: "This is one of the most complex transportation construction programs in the country and it demands disciplined execution from day one."
Christopher Zegler, vice president and principal in charge at Turner, added: "Delivering this project in the heart of Manhattan, while keeping the terminal fully operational, requires precise planning and disciplined execution."
The Port Authority is betting that a proven JV can manage the complexity of a $10 billion project in a constrained urban site. The agency has not disclosed the construction manager fee, but the scale suggests a significant revenue stream for the JV.
For institutional investors and REIT analysts, this project offers a window into public infrastructure delivery. The Port Authority's choice of a JV with deep local experience signals a preference for execution certainty over cost minimization.
The $1.87 billion guaranteed maximum price contract to Tutor Perini sets a benchmark for Phase 1 costs. If the JV manages scope and schedule effectively, the full $10 billion program could proceed on budget. If not, cost overruns will ripple through the Port Authority's capital plan.
The project also tests the viability of large-scale public-private partnerships in New York. The Port Authority is self-funding the terminal replacement through its capital budget, but future phases could attract private capital if Phase 1 delivers on time and on budget.
For Turner and STV, this is a marquee assignment that will shape their reputations for a decade. For the Port Authority, it is a bet that disciplined construction management can deliver a $10 billion project in the heart of Manhattan without disrupting 200,000 daily commuters.
The market will watch Phase 1 milestones closely. Every delay or cost overrun will be measured against the $1.87 billion GMP and the 2026 start date. The JV's performance will set the tone for Phase 2 and for future mega-projects in the region.