New Era for Transit, NY & NJ Break Ground on Midtown Bus Terminal Project

First phase launches with Dyer Avenue deck-overs, paving the way for a $10 billion overhaul of the world’s busiest bus terminal and 3.5 acres of future open space.

Construction has officially commenced on the long-anticipated Midtown Bus Terminal replacement project with the groundbreaking of the Dyer Avenue deck-overs, marking the first major phase in a multibillion-dollar effort to transform New York City's aging bus infrastructure. New York Governor Kathy Hochul, New Jersey Governor Phil Murphy, and the Port Authority of New York and New Jersey gathered on-site to launch the redevelopment, which aims to modernize one of the region’s most critical transit hubs and enhance the commuter experience for hundreds of thousands of daily riders.

“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,” said New York Gov. Kathy Hochul. “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.”

The project’s first phase includes the construction of two large deck structures over sunken sections of Dyer Avenue and the Lincoln Tunnel Expressway between West 37th and 39th streets. These deck-overs will initially function as staging areas for buses during the terminal's construction. Upon completion of the overall project, they will be repurposed into 3.5 acres of publicly accessible green space.

The new terminal will replace the existing 75-year-old structure, which was originally built in 1950 to consolidate eight separate Midtown bus terminals and reduce surface street congestion. At its peak in the 1960s, the terminal managed nearly 69 million passengers annually. Today, even post-pandemic, it remains the world’s busiest bus terminal, serving about 205,000 weekday passengers.

“Today’s groundbreaking reflects our shared commitment to improving the transit experience throughout the tri-state area. 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,” said New Jersey Gov. Phil Murphy. “This project is another major step toward modernizing our transportation infrastructure, improving the commuter experience, and reducing bus congestion. Just as importantly, it will create thousands of good-paying union jobs, bolstering our workforce and economy.”

Designed to accommodate future passenger demand through 2050, the new facility will include:

• A modern main terminal

• A new building dedicated to bus storage and staging

• Direct-access ramps to and from the Lincoln Tunnel

• Charging infrastructure for all-electric bus fleets

• Community-facing retail outlets

• A multi-story indoor atrium

• Expanded public open space

The project will not require the acquisition of private property, as construction will be contained within existing Port Authority-owned land extending to 11th Avenue. A portion of 41st Street between Eighth and Ninth Avenues will be permanently closed to integrate the terminal’s entrance and improve pedestrian and traffic flow.

The $10 billion endeavor is being built in stages to minimize disruption. The deck-overs and staging facility will be constructed first, with the storage building also serving as a temporary terminal while the existing terminal is replaced.

Environmental considerations are central to the project. The terminal will be designed as a net-zero emissions facility, aiming to reduce local bus congestion, idling, and emissions. New queue lanes and bypass capabilities are expected to streamline bus circulation and reduce reliance on city streets.

The terminal redesign follows an extensive community engagement effort and received support from local stakeholders, elected officials, and both state and federal agencies. In addition to its transportation benefits, the project is expected to create approximately 6,000 union construction jobs.

This transformative infrastructure initiative builds on a long history of upgrades. Past expansions in 1963, 1970, and 1981 increased terminal capacity in response to rising commuter volumes. The introduction of the Exclusive Bus Lane (XBL) in 1970 on NJ Route 495 significantly improved travel times for New Jersey buses, which remain the terminal’s largest users through NJ TRANSIT and other carriers.

As planning advances and construction progresses, the Midtown Bus Terminal project represents a critical investment in the region’s transportation future, supporting economic interconnectivity between New York and New Jersey and positioning the terminal as a state-of-the-art gateway for decades to come.