In April, the Port Authority of New York and New Jersey opened the first new cargo center at John F. Kennedy International Airport (JFK) in 25 years. Known simply as Building 260, the 350,000-square-foot facility spans 26 acres and represents the first phase in a comprehensive initiative to modernize cargo handling at JFK. This strategic shift to the north end of the airfield will consolidate operations from four separate cargo zones into a single, modernized location and is designed to reduce congestion, streamline operations, enhance efficiency and unlock space for future development at the busy airport.
“In addition to being the busiest U.S. entry point for low-value international e-commerce packages, JFK is a key high-value international cargo hub,” says Susan Warner-Dooley, aviation commercial management director for the Port Authority. Last year, the airport handled 1.67 million tons of cargo, a 5% increase from 2023 and 25% more than in 2019, making it the eighth-busiest cargo airport in the U.S. and 21st globally.
The Port Authority, which owns and operates JFK, reports that air cargo generates $11.4 billion in annual economic activity and supports more than 93,000 direct and indirect jobs at the airport. Even though JFK was already a key hub for global trade, realigning cargo operations is expected to generate new jobs and economic development opportunities as well as improve service for industries that rely on time-sensitive cargo.
 facts&figures
Project: Cargo Facility Location: John F. Kennedy Int’l Airport Size: 350,000 sq. ft. on 26 acres Noteworthy Features: Advanced truck docking management system; electric forklifts & equipment chargers; automated unit load device system to optimize power usage; 3,000 sq. ft. of cooler space for temperature-sensitive pharmaceuticals & other perishable goods Cost: $270 million Airport Owner/Operator: Facility Developer: Realterm Primary Cargo Operator: Worldwide Flight Services Design: KSS Architects Construction: VRH Construction Project Timeline: Design began April 2019; construction July 2021-Dec. 2024; grand opening April 2025 Key Benefits: Improved operational efficiency & sustainability; reduced noise, emissions & road congestion for airport neighbors; local job creation; business diversity & inclusivity |
“By replacing outdated facilities with a modern cargo center, we’re preparing for the future and improving efficiency and sustainability at JFK,” said Port Authority Executive Director Rick Cotton in a written statement. “JFK plays a central role in global commerce, and this modern consolidated cargo center strengthens its position as a key gateway for high-value goods and international trade.”
In addition to replacing two separate older facilities, the new cargo center includes 3,000 square feet of cooler space for temperature-sensitive pharmaceuticals and other perishable goods. Separate areas at 2 to 8 degrees Celsius and 15 to 25 degrees Celsius are available, significantly enhancing JFK’s on-airport storage capabilities.
Public-Private Development
The new $270 million facility was developed through a public-private partnership of Realterm, the Port Authority and Worldwide Flight Services (the primary operator/occupant). “The public-private partnership structure provided significant advantages for the Port Authority and the JFK community,” Warner-Dooley says. “It leveraged the private sector’s capital, logistics expertise and development efficiency, while aligning with the public sector’s goals of job creation, sustainability and local economic growth.”
Realterm led the project, leveraging more than 30 years of experience in air cargo development and management, including a 20-year partnership with the Port Authority at JFK and Newark Liberty International Airport (EWR). “We’ve worked in collaboration with the Port Authority to ensure these facilities are well-managed and supported the continually growing and evolving air cargo operational needs at each of those airports,” says Greg Russell, senior vice president of development with Realterm.
Overall, the company is the largest developer and manager of air cargo facilities in North America, with more than 18.5 million square feet at 37 airports.
At JFK, Realterm oversaw design and construction of Building 260. Per a ground lease with the Port Authority, it is also in charge of operations and maintenance.
“It’s a win for the Port Authority, a win for the air cargo operator and a win for the community,” says Bob Caton, the company’s vice president of Airport Operations. Each win is defined by the goals that were collectively established at the outset, collaborated on throughout the design and construction, and ultimately met upon delivery, he explains.
Maximizing Movement
As a “mature airport” that originally opened in 1948, JFK naturally has facilities and infrastructure that have become less functional throughout the years. Key assets in need of modernization include access roads to/from airport facilities and the regional cargo community.
The vision for realigning cargo operations at JFK dates back at least to 2012, when then-governor Andrew Cuomo prioritized regaining market share. A commissioned study showed that much of the airport’s cargo infrastructure was outdated and functionally obsolete. In order for it to remain competitive at the time and into the future, updates were necessary.
The Port Authority and New York City Economic Development Corporation initiated a strategic planning process to review and revitalize the air cargo market at JFK. Primary objectives include:
- growing and enhancing air cargo movement at JFK
- increasing cargo-related employment opportunities
- promoting a comprehensive regional freight policy and public investment
- diversifying and expanding industrial business in the city and region
- generating new investment in cargo-related facilities and infrastructure to serve the city and airport
- maximizing real estate use and operational efficiencies within the JFK study area
“Agreeing on those goals early in the development process through open communication and collaboration across each of the parties really set the project up for success,” Russell comments.
Like many other airports, JFK didn’t originally have a long-term development plan for cargo operations. Carriers constructed facilities as-needed over the years, without much holistic planning for the future. Not surprisingly, this led to a fragmented operating environment. “Today, airports have to be a little more strategic,” says Caton. To that end, the Port Authority determined that consolidating cargo operations close to the off-airport community that supports cargo activity at JFK would allow for the most operational efficiency and set the stage for future expansion. Building 260 is the first of many new facilities to help achieve those goals.
The redevelopment strategy consolidates operations to the existing Cargo Area D, but multiple enabling projects needed to be completed before that could begin. Utilities were removed and replaced, and two functionally obsolete cargo buildings no longer in operation had to be removed. Due to their age, demolition required hazardous material remediation. Crews also relocated a large-scale sewer interceptor in coordination with the New York City Department of Environmental Protection.
“It’s no easy feat to construct a project of this size and scale at an airport as busy and active as JFK,” Russell notes.
Extra coordination was needed during design, phasing and construction because crews had to work near an active runway and other construction sites. “There were several passenger-related terminal developments and an adjacent taxiway project going on at the same time,” Caton recalls. Mobilizing crews, building materials, equipment and large machinery required care and cooperation with airport operations staff, the air traffic control tower and other project teams.
Timing was an additional hurdle, as groundbreaking and early construction of the new cargo center took place during the COVID-19 pandemic. “We were able to navigate through this unprecedented challenge due to the dedicated commitment of our team, the Port Authority, Worldwide Flight Services and the JFK Airport community who supported the project every step of the way,” says Russell.
The Payback
Realterm emphasizes the value of early communication with the Port Authority and airport community to align key goals. “When planning an air cargo project of this size at an airport like JFK, we think it’s important to remember that the airport is an economic engine for the communities that surround it,” Russell says.
The new 350,000-square-foot facility includes coolers for pharmaceuticals and other perishable goods.
Importantly, the new cargo center and how it was developed are intended to set the tone for broader air cargo modernization at JFK. Innovations in Building 260 are designed to streamline operations, reduce wait times for truck drivers and minimize queuing outside the facility.
“This project has enhanced operational efficiency by consolidating two outdated facilities into a single modern air cargo operation that incorporates an advanced material handling system and advanced software to support the warehouse and landside trucking operation that helps reduce congestion,” Caton explains.
For example, an advanced management system for truck docking leverages real-time scheduling, automated check-ins and digital communication between drivers and dock operators to automatically allocate the most efficient door based on the size, type and contents of each delivery. This maximizes throughput and reduces delays, as well as ensures that trucks arrive only when a dock is available. In addition to optimizing the flow of goods in and out of the facility, the new system minimizes the number of trucks on the road or waiting in nearby neighborhoods. Reducing noise, vehicle emissions and traffic congestion for the surrounding community was an important objective for JFK officials. Another was hiring workers from the surrounding community. This was achieved by targeted outreach and hosting local job fairs, notes Warner-Dooley.
Building 260 is the first new cargo center at JFK in 25 years.
The project, which achieved LEED Gold certification from the U.S. Green Building Council, sets a new benchmark for sustainability in airport cargo operations. It also advances the Port Authority’s commitment to reach net-zero carbon emissions by 2050 and facilitates the same goal for its operational partners. The new facility features electric forklifts, electric equipment chargers and an automated unit load device system to optimize power usage. In the front of the building, there are charging stations for electrical vehicles.
“All of that is a tremendous opportunity for our project team, with the support of the airport, the community and tenant Worldwide Flight Services, really delivered on,” Russell says.
The project also exceeded the team’s goals for diverse participation, with fully 42% of construction contracts awarded to minority- and women-owned business enterprises (MWBEs).
Shared Challenges
Warner-Dooley describes the new cargo center as a powerful example of how collaboration between public agencies and private partners can drive innovation, optimize logistics and accelerate project delivery. “The success of this project highlights the importance of digitalization to streamline cargo flow, sustainability to meet long-term environmental goals and equity-focused practices such as local hiring and MWBE participation,” she elaborates. “By aligning infrastructure investments with both industry needs
and community priorities, JFK has shown how airports can create resilient, future-ready cargo ecosystems that strengthen global trade while supporting local economic growth.”
“Reaching out to the community early and often is a part of our DNA,” Russell adds.
Acknowledging that each airport and cargo project is unique, Russell emphasizes there are lessons to be learned from JFK because most domestic gateway airports share similar challenges regarding aging infrastructure, fragmented operations, congestion and land constraints. “This particular project is a success because it addresses all of these challenges head on and delivers for both the airport and community,” he concludes.
