NJ Transit released a plan that could realize as much as $1.9 billion in non-farebox revenue over the next 30 years through a combination of opportunities designed to unlock value from its 8,000-acre real estate portfolio.
NJ Transit President and CEO Kris Kolluri, joined by local and state officials and other stakeholders, unveiled The LAND Plan: Leveraging Assets for Non-farebox Dollars, during an event at Metropark Station in Woodbridge.
Additionally, the plan could add up to $14 billion in economic impact to New Jersey, up to an additional $1.6 billion in municipal revenues and create up to 50,000 jobs and up to 20,000 new housing units.
The plan presents a series of potential opportunities and suggested actions for consideration to maximize the associated potential revenue. From transit-oriented development (TOD) to retail concessions to industrial hubs and advertising, the plan offers a unique opportunity to generate essential funding by leveraging its underutilized assets for development, as well as enhancing its customer experience with retail offerings and advertising.
“This first-of-its-kind plan delivers a roadmap for the next administration that maximizes non-farebox revenue opportunities for NJ Transit, the State of New Jersey and the municipalities we serve,” said Kolluri.
“The plan’s proposed actions are presented merely as options for consideration — not mandates — to support the plan’s full revenue potential. I have a deep respect for home rule in New Jersey and the legislative process, and look forward to working collaboratively with the legislature, municipalities and elected officials across the state.”
“NJ Transit is a lifeline for all New Jerseyans, helping residents commute to work and school and attend to personal needs. It’s also a powerful contributor not just to New Jersey’s economy but the nation’s,” said State Senator and Senate Transportation Committee Chairman Patrick Diegnan. “This analysis provides a self-sufficient way to help keep NJ Transit funded and is a major boost to New Jersey’s economy.”
The study’s key findings for non-farebox revenue opportunities over the next 30 years include:
- Transit-Oriented Development: Walkable, mixed-use communities centered around transit hubs boost ridership and generate revenue through land leases or sales. Additional revenue potential: $780 million-$1.1 billion
- Industrial Hubs: Certain properties are ideal for warehousing and industrial uses, requiring large, flat parcels with good road access and utilities. Additional revenue potential: $150 million-$300 million
- Temporary Uses: Short-term activities such as events, filming and pop-ups use land, structures and vehicles. Additional revenue potential: $15 million-$30 million
- Retail Concessions: Rental income is generated from retail tenants occupying concession spaces in NJ Transit facilities, providing desirable customer amenities. Additional revenue potential: $80 million-$100 million
- Advertising: Revenue streams include advertising on digital displays, within station facilities, on vehicles and through naming rights arrangements. Additional revenue potential: $40 million-$130 million
- Parking Optimization: Parking fees collected at station lots, sometimes shared with municipalities or private operators, provide additional revenue. Additional revenue potential: $170 million-$230 million
- Wetland Banking: Restoring or preserving wetlands on suitable vacant land earns ecological credits, with the highest value in contiguous conservation areas and watershed management areas otherwise impacted by service development. Restored/Preserved land: 150-170 acres
- Solar Power: NJ Transit can provide opportunities for development of solar power generation projects across multiple redevelopment sites, including surface parking canopies and rooftop installations. Power generation potential: 5 megawatts
These estimates are derived from internal NJ Transit analysis.
