The State Pier in New London is undergoing a $235 million infrastructure update that after cost increases and project delays, is set to be completed by April of 2023.
"I think it is one of the most important investments this state has made in many years," said Governor Ned Lamont after touring construction at the State Pier on Tuesday.
The redevelopment plan for the State Pier was finalized in 2020 as a public-private partnership between the Connecticut Port Authority, Gateway Terminal, and energy companies Orsted and Eversource.
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According to the CT Port Authority, the infrastructure upgrades will modernize the State Pier into a "heavy-lift capable port" that meets the facility requirements of the offshore wind industry. Once the project is completed, Orsted and Eversource will enter into a ten-year lease agreement with the State Pier. They will use the space to pre-assemble and stage wind turbine generators.
"We are both building for generational opportunities, but also seizing a near-term opportunity for private contribution and utilization that will anchor southeastern Connecticut as the foundation of the green sector economy and offshore wind," said David Kooris, CT Port Authority board chair.
When the project was initially announced in 2019, the cost was estimated to be about $93 million. Today, Kooris said that the total represented committed funds, not the total estimate.
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"At that time, we were looking at a project that was really closer to about $125 million," said Kooris.
Since then, the cost jumped to about $235.5 million. Kooris said several factors contributed to the increase, including higher prices and permitting delays. Kooris told the CT Port Authority board Tuesday that the total price is expected to rise even more. In a board meeting, he said they expect to pay about $6.8 million more to account for delays.
"It is a reasonable number given about a half a year of delay, and it is less than some of the escalating costs that we could have seen if we had delayed the project because of inflation and the rising cost of steel," said Kooris.
The project is now expected to be completed by April of 2023. If they chose to accelerate that timeline, more costs could be associated.
"Time is money, and there were some delays that cost, but you have got to keep the perspective. I think this is transformative for our state and this region," said Lamont.
When the work is done, project leaders say the infrastructure update will result in hundreds of jobs. The weight capacity at the pier will be five times greater and boat traffic is expected to increase four-fold.
Kooris said that the State Pier will uniquely position southeastern CT for opportunities in the offshore wind industry and beyond.
"This tool exists now for economic development for the state of Connecticut," said Kooris.
