Log In


Reset Password
  • MENU
    Local News
    Thursday, May 16, 2024

    Port authority updates timeline ― but not cost ― for State Pier construction

    Connecticut Port Authority officials said Tuesday that construction work to position State Pier for the South Fork Wind project remains on track for “substantial completion” at the end of this month ― but there are some delays, and Executive Director Ulysses Hammond won’t say yet how much they will cost.

    The Feb. 28 milestone is for completion of the northeast bulkhead heavy-lift platform, also known as the delivery berth. The port authority in a statement attributed delays in total site completion to “supply chain constraints and unknown site conditions (including obstructions).”

    Board Chairman David Kooris said the agency is handing over State Pier to port operator Gateway in March, and Northeast Offshore LLC (NEO) will start to utilize the facility in April. NEO is the joint venture of Ørsted and Eversource.

    Kooris said the bulk of the facility ― including the upland areas, railroad parcel and warehouse ― will be finished in April. But the remaining dredging has been delayed until the fall.

    Hammond said State Pier is “aggressively transitioning from construction to terminal operations,” with a new entrance being installed this month and trailers leaving next month.

    He added, “Connecticut is at the forefront of a new and exciting jobs-producing sustainable energy industry.”

    Marlin Peterson, construction manager for AECOM, the project’s construction administrator, said the value of work completed on-site to date is about $180 million.

    No answer about cost overrun total

    Port authority board member David Pohorylo pressed Hammond for the scope of cost overruns due to delays but didn’t get an answer.

    Hammond said he’s confident he will have something to share with the board soon but it’s “premature right now, when you’re in negotiations with all the parties, to start talking about numbers.”

    The port authority added in a statement that it is in “late-stage negotiations” with AECOM, construction manager Kiewit, Gateway, and Ørsted/Eversource “towards a final path forward. Negotiations remain dependent on agreed costs resultant from outstanding design changes driven by unknown site conditions and will include additional resources from our private partners to achieve a fair and successful final path forward to project construction completion this fall.”

    The port authority also currently has an operating deficit. But Andrew Lavigne, manager of business development and special projects for the port authority, said the agency anticipated a deficit due to the timing of revenue expected in the next few months. He said until those funds are received, surplus from prior years will fund operations.

    He was referring to the funding the port authority will receive when it begins subleasing State Pier. Kooris said lease revenue will come in on a quarterly basis, and he expects the first quarterly payment in March for the period beginning April 1. He said the first payment “won’t be pro-rated to reflect that a small portion of the facility is not complete.”

    Gateway said in a statement Tuesday, “Gateway continues to work closely with the CPA to ensure that we are ready to commence terminal operations as soon as the State Pier is available for use. We understand that the redevelopment will be completed in stages and we are preparing accordingly.”

    During public comment at the beginning of the meeting, port authority critic Kevin Blacker took issue with relying on expected payments.

    Another part of the meeting that was of interest to Blacker was training from Peter Lewandowski, executive director of the Office of State Ethics. Lewandowski educated board members about prohibitions on receiving gifts, conflict of interest provisions, and revolving door provisions after members leave the board.

    Port authority details current and future work

    Hammond said offshore wind components will arrive this spring, in preparation for the summer arrival of 12 turbines.

    But there have been delays.

    Hammond said dredging of the final 14,000 cubic yards, which is about 9% of total dredged material, has been rescheduled to the next dredge season, in the fall because the final 12 of 145 piles haven’t been driven to their designed depth. That will occur this summer.

    Another involves the supply of stone mix, which forms the final surface of the pier. It was found to be noncompliant with specifications so the contractor removed the material at no cost to the port authority and picked another supplier. The new supplier has increased production levels.

    Peterson added that “supply chain issues are primarily affecting us in the electrical component area and will have an impact on final completion of the project.”

    Some components are scheduled for installation and delivery in September and October, but Hammond said this won’t impact the start of the South Fork Wind project.

    Comment threads are monitored for 48 hours after publication and then closed.