Construction Begins on Manhattan's $10B Midtown Bus Terminal Transformation


A rendering of the new bus terminal.

NY Port Authority render

A rendering of the new bus terminal.


The article below originally appeared in and is posted with permission from:


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Construction on the New York Port Authority's Midtown Bus Terminal in Manhattan finally began May 29, 2025, when shovels hit the dirt on the Dyer Avenue deck-overs at the West Side work site, marking the first stage of construction for the much-anticipated $10 billion bus hub.

As announced in December 2024 by the Port Authority of New York New Jersey (PANYNJ), the deck-overs above Dyer Avenue will serve as a staging site for buses during the heavy work period.

But the temporary structures will offer more than practical uses, amNY reported. They will be turned into nearly 4 acres of publicly accessible green space once the remodeled terminal is complete.

"Here in New York, we are showing the world what is possible when government and the local community commit to making the vision of modern infrastructure a reality," New York Gov. Kathy Hochul said at the ceremonial groundbreaking. "A new Midtown Bus Terminal will deliver an enhanced experience for millions of riders, breathe new life into the surrounding neighborhood, and ensure that this gateway to the city is one New Yorkers can be proud of for generations to come."

Commonly known as the Port Authority Bus Terminal, the new project received federal approval to proceed with a major overhaul of the site in 2024. With the start of construction, the obsolete, dreary infrastructure of the 75-year-old depot will be turned into what officials call a "world-class" bus terminal.

"Upon completion, the new state-of-the-art Midtown Bus Terminal will serve hundreds of thousands of commuters each day as they head to work, school, medical appointments or return home," New Jersey Gov. Phil Murphy noted in his remarks at the work site. "This project is another major step toward modernizing our transportation infrastructure, improving the commuter experience and reducing bus congestion."

Current Bus Terminal Deemed Functionally Obsolete

The Port Authority's construction plan for the new bus terminal calls for it to be built in phases, with the deck-overs being built first, followed by a storage and staging building.

PANYNJ noted that the Dyer Avenue deck-overs represent the first step in the replacement of the existing 75-year-old, functionally obsolete bus terminal with a world-class facility.

The deck-overs project encompasses the construction of two decks over below-grade portions of Dyer Avenue and the Lincoln Tunnel Expressway between West 37th and West 38th streets and between West 38th and West 39th streets. The storage and staging facility can serve as a temporary terminal while the existing terminal is demolished and replaced.

When complete, the project will also include new ramps leading directly into and out of the Lincoln Tunnel.

The project plan — including the permanent closure of a portion of 41st Street between Eighth and Ninth avenues, a central main entrance, more street-facing retail, a soaring multi-story indoor atrium and new public open space — will enhance the commuter experience at the world's most active bus terminal and become a centerpiece for the community.

In addition, the effort is expected to create approximately 6,000 good-paying union construction jobs, according to the Port Authority.

PANYNJ capital is funding the makeover as future phases will use revenue from commercial development rights, including NYC PILOT contributions.

"It is incredibly satisfying to break ground on the first stage of construction of a new Midtown Bus Terminal that will improve the lives of hundreds of thousands of daily commuters between New Jersey and New York, and greatly improve the community hosting it," PANYNJ Chair Kevin O'Toole said.

Officials said the temporary terminal and new ramps are expected to be finished in 2028, followed by the new main terminal's completion in 2032.

Building Transportation Hub for Future

Reliable and efficient bus service between New York and New Jersey is critical to the interconnected economies of both states, PANYNJ noted, as hundreds of thousands of New Jersey residents work in New York City.

The new terminal has been designed to meet projected 2040-50 commuter growth, provide a best-in-class customer experience that serves the region's 21st century public transportation needs, and enhance the surrounding community. The project does not include the taking of any private land as it will be built on existing Port Authority property stretching as far west as 11th Avenue.

It also will be built for the future and designed to emit net-zero emissions by accommodating all-electric bus fleets and implementing modern high technology innovations. The new ramp structure will provide a direct connection to the Lincoln Tunnel, with added queue space and bypass capability, thereby reducing congestion, bus circulation, idling and parking on local city streets.

Facility Has Grown With NYC Over Last 75 Years

The facility that is currently the world's busiest bus terminal first opened in 1950, after the mayor of New York City requested the Port Authority to consolidate eight separate and smaller bus terminals throughout Midtown Manhattan in order to relieve street congestion.

As greater New York City's population grew and spread geographically, the Port Authority expanded the terminal's capacity in 1963 by converting parking space to a fourth level of bus operations and adding three new levels of public parking for 1,000 cars. By 1966, the terminal served nearly 69 million passengers, but once again requiring increased bus capacity.

Construction in 1970 created a 2 mi. exclusive bus lane (XBL) on the New Jersey Highway 495 approach to the Lincoln Tunnel, giving buses faster access directly to the Midtown Bus Terminal and saving commuters up to 20 minutes in travel time.

In 1981, the Port Authority expanded the bus terminal's capacity by 50 percent with a new North Wing extension to 42nd Street and the diagonal girder façade now familiar to bus riders. The current facility spans 1.9 million sq. ft. and is the nation's largest bus terminal.

Individual carriers, the largest of which is NJ TRANSIT, serve routes for daily commuters throughout New Jersey, eastern Pennsylvania, and the lower Hudson Valley, as well as provide intercity services to and from locations such as upstate New York, New England, the Mid-Atlantic and Canada.

Prior to the COVID-19 pandemic, the bus terminal accommodated an estimated 260,000 passenger trips on an average weekday. As of 2024, the midtown hub served approximately 205,000 average weekday daily passengers.