Port Authority Revenues Stable Despite 300% Rise in Premiums

The Port Authority of New York and New Jersey reported $2.7 billion in gross operating revenues for 2001, slightly more than last year, despite a 300 percent increase in its insurance premiums from around $4 million to $16 million.

Increased fares on its tunnels and bridges, coupled with the fact that it’s still receiving around $10 million a month from Silverstein Properties and its partner Westfield America in rental payments on the destroyed World Trade Center, helped soften the financial impact of the Sept. 11 attacks.

According to a report from Reuters News Agency, the Port Authority’s CFO, Charles McClafferty stated in a conference call to investors that despite the premium increase the level of coverage had decreased. It now has occurrence limits of $750 million on its airport facilities and $600 million on non-aviation related risks, compared $1.25 billion and $650 million respectively before the policies were renewed in October. He indicated that it would be difficult for the Port Authority to obtain the same levels of insurance coverage as it had in the past.

McClafferty also noted that clearing the debris at the WTC site had progressed faster than anticipated and expressed the hope that reconstruction could begin as early as late May or early June. The Port Authority would then be able to begin restoring rail services to the PATH station and two subway lines that were heavily damaged on Sept. 11.