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Questions of Hon. Solomon P. Ortiz and Hon. Curt 

 Weldon and responses from Lillian Liburdi, 

 Director of Port Department, Port Authority of New Jersey 



Responses to Written Questions 



1. What has been the economic impact to both the Port Authority and 

 the companies you serve as a result of the permit denial? Have the 

 shipping companies diverted their cargo to other ports? If so, which 

 ports? 



It is very difficult to precisely quantify the losses at this 

 time. The International Longshoremen's Association (ILA) reported in 

 early Hay of this year that there has been a reduction in labor hours 

 for the past six months when compared to a similar period the previous 

 year. The ILA reported a loss of over 100,000 hours. We estimate a 

 loss of 2 to 3 percent of cargo tonnage in the last quarter of 1992 due 

 to diversions to other ports. We expect the first quarter of 1993 to 

 show a much greater loss. 



We believe that Maersk Lines is diverting cargo because we 

 can no longer accommodate their deeper draft vessels fully loaded. They 

 have recently announced that Halifax, Canada, has been chosen over Port 

 Newark and Elizabeth Marine Terminal as the Lines' East Coast deep 

 water port. 



Hapag-Lloyd, due to inadequate berth depths at our Port 

 Newark and Elizabeth Port Authority Marine Terminal, no longer has the 

 port as a first-in, last-out, port-of-call . Norfolk has become the 

 last port-of-call on the eastbound route to Europe. 



There have been at least 14 ship groundings since January 

 1992 at the facility. 



If these trends continue, we can expect a major reduction in 

 tonnage passing through the Port of New York and New Jersey. We are 

 performing an economic impact analysis to determine what losses we have 

 sustained at this time and what we can expect in the future, if we are 

 not able to dredge. 



2. What has been the total cost to the New York and New Jersey Port 

 Authority as a result of the permit denial? 



The total cost is indeterminate. We have spent nearly a 

 million and a half dollars on testing and analyses for the Port Newark 

 and Elizabeth Port Authority Marine Terminal ocean disposal dredging 

 permit. If we were to receive the permit, additional costs for 

 capping, alone, could exceed $3 million. In addition extra costs will 

 be incurred because of the extraordinary management procedures the Port 

 Authority is required to implement. The total estimated cost of 

 dredging the berths under the three year permit is $6.5. 



The inability for the Port Authority and others to dredge 

 material and ocean dispose of it because of the traces of dioxin in the 

 sediments will increase unemployment in a region which is already 

 suffering from a high unemployment rate of 9.1 percent as of January 

 1993. We have heard from a number of private firms that will, most 



