Brooklyn's Progress
August/September 2006

Brooklyn Chamber of Commerce President Kenneth Adams was called upon to testify before the New York City Council sub-committee on Landmarks, Public Siting and Maritime Uses about a proposal by the Axis Group, Inc. to use the South Brooklyn Marine Terminal (SBMT) as an auto terminal. Following is the testimony presented Jun. 20, in favor of the project, which has since been approved.

Good Morning Madam Chair and Members of the Committee.  My name is Kenneth Adams and I am the President of the Brooklyn Chamber of Commerce. 

I am here to recommend that you approve the proposal submitted by Axis Group for use of the South Brooklyn Marine Terminal as an auto terminal.

As the leading economic development organization in our borough, the Brooklyn Chamber of Commerce advocates for new private sector investment in Brooklyn to create new jobs for local residents and to stimulate new business activity for Brooklyn businesses, especially small businesses, as they are the foundation of our private sector economy.

With a dramatic transformation of the Brooklyn post-industrial waterfront underway – from its northern edge at Newtown Creek to the Brooklyn Army Terminal – leading to a variety of new waterfront uses, from housing, to parks to new commercial uses such as big-box retail, it is imperative that we retain appropriate sites for job-generating industrial uses.  There are indeed still sections of the Brooklyn waterfront that endure as safe havens for industry – for important business activity that would not be welcome in (not could afford) other Brooklyn locations. 

SBMT is one such location.  The South Brooklyn Marine Terminal is vital to the economic prosperity of the Brooklyn waterfront.  The proposal by Axis Group to lease SBMT for its car processing and distribution operation and to accommodate other break bulk cargo operations at the facility in our view meets the demands for an appropriate private sector industrial tenant at this site. 

To realize the benefits outlined in this proposal it is important to honor all aspects of the plan, including the length of the lease, which is critical to the success of this project.  The Axis Group has committed to meeting a minimum vessel threshold over the life of the lease with regular monitoring by the city.  The proposal provides an economic boost for the South Brooklyn Marine Terminal and an estimated 300 jobs, most of which will be for workers from the surrounding community.

The recommendations of the 1999 Strategic Port Plan and the 2005 Comprehensive Port Improvement Plan support Axis’s proposal.  Those reports recommend an auto terminal because the site has accommodated new autos for years and it allows for easy conversion.  The reports also recommend a use that will generate the most direct jobs and require a limited capital investment. This plan meets those recommendations.

This lease comes up for review after 20 years.  Clearly, the city will retain its right to reclaim the property for other uses if necessary.  Using this site as an auto terminal will allow the property to be converted to other uses if demand and necessity in the future dictate.  The Axis Group’s plan for the South Brooklyn Marine Terminal will help confirm the North Atlantic’s status as a hub port for the region.  It also means the Port of New York will retain its auto import business – not many people realize the Port brings in 700,000 autos each year.

I respectfully recommend that you approve this proposal. 

Thank you for your time and attention.