WTC Records Folder 0140 label, 2001

NYC 9/11 Public Portal Document

In addition to direct property damage, the MTA's capital program will require significant additions to accommodate essential safety and security projects, and measures to ensure system compatibility between the reconstructed portions and the rest of the transit network. The MTA estimates a $1.87 billion impact on its capital program, which extends through 2004.

The MTA's operating budget relies on subsidies from local mortgage and business related taxes, which will be significantly diminished by the economic impacts of the destruction in lower Manhattan. The MTA estimates that it will lose $163 million of its subsidy income through 2002 as the result of the disaster.

The dislocation of jobs in lower Manhattan, the loss of subway facilities, and closure of the Brooklyn Battery Tunnel will reduce ridership, associated fare and toll revenues and concession income that support essential MTA operations. The MTA estimates that it will lose $245 million in income through 2002 as a result of the disaster.

While the MTA has $1.5 billion of property damage and revenue loss insurance, which may be applied to a portion of these costs, it is clear that the total impact will exceed any available insurance coverage.

In summary, the MTA estimates preliminary reconstruction needs of $4.1 billion:

Direct infrastructure damage $1,700 Disaster-related operating costs $123 Capital costs for safety, security and system $1,868 compatibility Reduction of tax subsidies due to economic disruption $ 163 Toll and fare revenue loss $ 245

PORT AUTHORITY OF NEW YORK AND NEW JERSEY

The Port Authority's World Trade Center complex was totally destroyed in the September 11 attacks. The cost for reconstruction of the facility will depend on the nature and scope of the redevelopment plans that will be developed. While insurance is available to cover some reconstruction costs, it is unknown at this time whether it will be adequate to fully pay for the rebuilding.

In addition to the World Trade Center buildings, the Port Authority incurred other significant facility damage and operational costs as the result of the disaster. The Port Authority Trans Hudson (PATH) subway station at the base of the World Trade Center was totally destroyed. The Authority estimates that replacement costs for the PATH station, tunnels and operating systems will total $850 million. The Port Authority lost office equipment, computer systems and vehicle fleets in the attack with an estimated replacement cost of $150 million. The Authority estimates it will incur $100 million in ferry capital and operating costs to replace J:\PR\WTC\WTC2.doc 6

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