1. US Army Corps of Engineers BUILDING STRONG NY & NJ Harbor Deepening Project Status Update and Lessons Learned Thomas J. Shea, III, PMP Project Manager Harbor Programs Branch U.S. Army Engineer District, New York 25 October 2012

2. BUILDING STRONG ® Significance of the Port of NY & NJ Largest Port on the East Coast (59% share) 3 rd in US (13% share); 15 th in World $114.5 B in cargo (over 5 million TEUs per year) 852,000 automobiles 269,900 full time jobs (10/2011) $11.2B in personal income (10/2011) $2.2 B in NY/NJ state and local tax revenue 35 percent of US population served

3. BUILDING STRONG ® Project Timeline  1996 – Vice Presidents Press Release  1997 – 905b Report completed, Feasibility Study Initiated  1999 – Feasibility Study and FEIS completed  2000 – Chiefs Report and Authorization  2001 – Pre-Construction Engineering and Design initiated  2004 – LRR Completed and PCA executed  2005 – First Construction Contract Awarded  2013 – Last Construction Contract Awarded  2013 – Limited Access to 50 ft traffic  2014 – Full Access to 50 ft traffic

4. BUILDING STRONG ® Description: Deepens 35 miles of navigation channels to 50 - 53 ft (mean low water) to provide deep draft access to the major container terminals within the Port of New York and New Jersey. Key features of the 50 ft. project include: –17 large multiyear dredging contracts –Mitigation restoring 143 acres of tidal wetlands –Offsets NOx air emissions from project –Beneficial use of dredged material Total Project Cost $1.6 Billion Cost Share About 54% Fed, 46% Non-Fed Project Overview Sponsor Port Authority of New York & New Jersey New Jersey Department of Transportation Office of Maritime Resources

5. BUILDING STRONG ® Existing Conditions - 1997 Auth/Maint to 45 Ft Auth/Maint to 40 ft Auth to 45, Maint at 40 Water Siphon Auth to 41/40, Maint to 35

6. BUILDING STRONG ® Current Status KvK-5 Underway in FY 13 Awarded in FY 13 Completed in FY 13 S-AM-1 S-KvK-2 S-AN-1a Completed S-NB-1 S-KvK-1 S-E-1 S-AM-2a PJ-3 S-AN-1b/S-AM-2b PJ-4 S-NB-2/S-AK-1 S-AK-2 S-AM-3 S-AK-3 Water Siphon Deferred Work S-AN-2 SRUC FY 13 Award

7. BUILDING STRONG ® Mitigation Program Wetlands Restoration: Required to mitigate for the loss of 6.26 acres of littoral habitat Two mitigation sites: Elders Point Marsh Island Restoration, Jamaica Bay, NY (40 acres, off site) Woodbridge Creek Ecosystem Restoration Project, Woodbridge, NJ (23 acres, off site) HAMP: Harbor Air Mitigation Program Required to offset NOX emissions Retrofitted seven tug engines in the NY/NJ Harbor Retrofitted Staten Island Ferry engines with generator kits

8. BUILDING STRONG ® Dredged Material Management Plan: Goal: to utilize ALL material beneficially Rock – used to create artificial reefs and lobster habitat. HARS suitable – used to nourish beaches, for habitat restoration, as construction grade fill, and for capping former ocean disposal site. HARS unsuitable – used to cap landfills and brown fields after being processed to stabilize/solidify material.

9. BUILDING STRONG ® 100% of all Dredged Material beneficially reused Capping the HARS for Remediation Rock to Artificial Reefs HARS unsuitable material to upland sites Sand for Jamaica Bay Marsh Islands Restoration Five Island restored Elders East* and West Yellow Bar Black Wall* Rulers Bar* Restored 143 acres of salt marsh Beneficial Reuse of Dredged Material Elders West constructed as mitigation Black Wall and Rulers Bar construction at 100% local cost

10. BUILDING STRONG ® Challenges – Environmental  CZM/CWA Compliance: How to get one for a 12 year project? ► We obtained an "umbrella" compliance for the Project Partnership Agreement, then a “notices to proceed” for each contract. ► Consider pursuing a 404R/T exemption – might save time and money during construction  Essential Fish Habitat: Windows can extend overall construction time ► Start a sampling program early and coordinate it with NOAA Fisheries ► Our sampling data has helped to shorten no-dredging windows – reduced contract duration  Clean Air Act Compliance ► Check your State Implementation Plan (SIP), your project may be included in it ► Dredging is considered a mobile emission, you may not be allowed to obtain Emission Reduction Credits to bring your project into compliance

11. BUILDING STRONG ® Challenges- Engineering - Construction  Construction Sequencing: ► Partner early and often with the USCG/VTS, pilots, users, and other stakeholders  Cost Estimates ► Rock quality designation is a better indicator of diggability than the Unconfined Compressive Strength ► If resedimentation is a concern, developing your overall construction schedule in the feasibility phase may help to estimate the volumes ► Provide a detailed explanation of methods (surveying, take-offs, etc) in the P&S  Noise and Vibration – Community Relations ► When working near homes and businesses an independent robust noise and vibration monitoring QA program is your friend ► Keep the community and its leaders informed, hold public information sessions and use creative ways to get the message out there.  Construction Management ► Don’t over complicate the contract by having numerous contract line items ► Every item that is paid for by survey yards requires surveying. Plan for the time.

12. BUILDING STRONG ® Challenges – General  Utility Relocations can become the critical path  The bigger the utility the more complex the decision making process becomes  Major utility relocations need to be an early activity and managed closely.  Contract Acquisition Planning  Smaller contracts get more competition, larger contracts reduce E&D.  We’ve used about $100,000,000 as the limit before losing competition.  Having an “industry day” meeting during advertisement is a valuable way to get input earlier in the acquisition process  Beneficial re-use of material is a Great thing  Partner early and be aggressive  Can play a vital role in accomplishing your long term environmental strategic goals.