$40m auto plant set to be built in Brooklyn.

New York City Economic Development Corporation (EDC) has reached an agreement with Axis Group Inc. to lease and develop a modern automobile-processing facility at the South Brooklyn Marine Terminal (SBMT) in Sunset Park.

The $40 million project will create 165 auto-processing jobs and more than 140 jobs related to stevedoring, warehousing and associated activities. Construction of the facility will create more than 300 additional jobs.

"One of the Bloomberg Administration's economic development goals is to make sure New York City remains an international shipping center by improving maritime transportation," said EDC President Andrew M. Alper. "Reinvigorating the South Brooklyn Marine Terminal into a major center of maritime commerce and industrial activity is a key part of that strategy. This agreement with Axis will help revitalize the Brooklyn waterfront by creating jobs, attracting new industries and increasing waterborne transport to relieve truck traffic and improve our environment."

Axis plans to lease about 74 of SBMT's 88 acres for 20 years, with two 5-year extensions. In addition to handling cean-going vessels, the company will also use rail barges to transport vehicles from the site to New Jersey railheads and distribution centers. This will reduce truck traffic on key crossings into New York City, such as the Verrazano Narrows Bridge, Manhattan Bridge and Holland Tunnel. Axis will phase in the development of its auto-processing facilities over a three-year period. In addition to auto-processing, the company plans to hire a general stevedore to market the facility for other types of maritime cargo. Axis will work with a task force co-sponsored by EDC, the Department of Small Business Services and Brooklyn Borough President Marty Markowitz to ensure that new jobs go to local residents to the greatest extent possible.

The Axis Group is a unit of Allied Holdings, a specialized trucking company and the largest transporter of new vehicles in the U.S. The company has operations in the U.S., Mexico, Canada, and South Africa, with customers that include Toyota, Honda, Daimler Chrysler, Ford, Nissan and General Motors.

"The Axis Group is delighted to have this opportunity to participate in the renewal of the South Brooklyn Marine terminal," said John Hartington, President of Axis Group. "We are committed to working with the City, the Borough, and the Sunset Park community to make the terminal a vital hub of maritime activity."

SBMT is located between 29th and 39th Streets, and between the Bay Ridge Channel and Second Avenue. The terminal offers the shortest sailing time to the open ocean of any port facility in New York and New Jersey. Axis's SBMT facility would serve the largest automobile and light vehicle market in the U.S., stretching from Boston to Philadelphia, where more than 5.7 million vehicles are sold each year.

The City and Axis will make capital improvements to the area to ensure a successful redevelopment plan. EDC has already completed a $21 million City project to stabilize the bulk,head on the piers at 33rd, 35th and 39th streets. These investments follow a concerted effort by EDC to work with local elected officials and community organizations to rejuvenate the City's vital maritime infrastructure.