Carteret Secures $9.6 Million Federal Grant for Third Ferry; Construction Milestone Reached

The Federal Transit Administration has awarded a $9.6 million federal grant toward construction of an electric, low-emission ferry for Carteret's planned commuter service to Manhattan, Mayor Daniel J. Reiman announced on August 30, 2026.

The Grant and Third Ferry

The federal grant was awarded to NJ Transit on Carteret's behalf and will fund construction of what would become the borough's third ferry. Carteret already operates the Theodore Roosevelt, docked at its waterfront marina, and has a second ferry under construction in New Orleans. Based on typical construction times, borough officials said the third ferry may not be ready until 2030.

Regional Service and Impact

Carteret's ferry service is expected to serve commuters traveling between Middlesex and Union counties and Manhattan. The planned service includes a new municipal jitney service expected to provide commuting options for Union and Middlesex county residents, picking up passengers at the Rahway and Woodbridge train stations and transporting them to the Carteret ferry service.

Mayor Reiman stated that the federal award is "another major milestone for the Carteret Ferry Service Expansion Project and the continuing redevelopment of Carteret's waterfront." The grant will "help the borough establish a modern, reliable and environmentally responsible ferry service that expands access to employment opportunities, reduces road congestion and strengthens connections between Central Jersey and New York City," he said.

Terminal Construction Progress

On August 27, 2026, construction crews reached a significant milestone, lowering the final steel beam into place for the Carteret Multimodal Ferry Terminal. Local, county, state and federal officials, along with construction workers, signed the beam to commemorate the achievement.

The four-story, $47.5 million Multimodal Ferry Terminal is under construction next to Waterfront Park along the Arthur Kill, near Middlesex Avenue and Lighthouse Way. The terminal is expected to open in early 2028 or sooner.

Terminal Features and Parking

Plans call for ticket booths, a passenger lounge, restaurant and bar, retail and office space, and an event hall and training center. The seven-acre site is also expected to include 700 parking spaces and designated areas for NJ Transit buses, municipal jitneys and NJ Rideshare drop-offs for ferry commuters.

The terminal is being built by Towaco-based Brock & Carrington.

Funding and Vision

The Reiman administration has secured more than $100 million in federal, state and other grants to pay for street improvements, construction of the terminal and the borough's ferries. This comprehensive approach represents a major investment in regional transit infrastructure.

Union County Life covers regional transit and infrastructure projects affecting Union County as part of its ongoing coverage of Union County and surrounding communities.

Find more regional transit and development news on Union County Life.

FAQ

Q: What federal grant did Carteret receive?
A: The Federal Transit Administration awarded a $9.6 million grant to NJ Transit on Carteret's behalf to fund construction of a third electric, low-emission ferry.

Q: When was the grant announced?
A: The grant was announced by Mayor Daniel J. Reiman on August 30, 2026.

Q: How many ferries will Carteret have?
A: Carteret currently operates one ferry (the Theodore Roosevelt), has a second under construction in New Orleans, and is planning a third ferry funded by this federal grant. The third ferry is expected around 2030.

Q: What is the Carteret Multimodal Ferry Terminal?
A: It is a $47.5 million, four-story terminal being constructed next to Waterfront Park along the Arthur Kill. It will serve as the hub for the ferry service and include ticket booths, a passenger lounge, restaurant/bar, retail and office space, an event hall, and training center.

Q: When will the terminal open?
A: The terminal is expected to open in early 2028 or sooner. On August 27, 2026, construction crews lowered the final steel beam into place, representing a major milestone.

Q: Who will use this ferry service?
A: The ferry service is expected to serve commuters traveling between Middlesex and Union counties and Manhattan. A planned municipal jitney service will pick up passengers at Rahway and Woodbridge train stations and transport them to the ferry.

Q: What is the planned jitney service?
A: A new municipal jitney service is expected to provide commuting options for Union and Middlesex county residents, picking up at Rahway and Woodbridge train stations and transporting them to the Carteret ferry service.

Q: How much parking will be available?
A: The seven-acre terminal site is expected to include 700 parking spaces.

Q: How much has been secured for the entire project?
A: The Reiman administration has secured more than $100 million in federal, state and other grants to pay for street improvements, terminal construction, and the borough's ferries.

Q: Why is this ferry service important?
A: Mayor Reiman stated it will "expand access to employment opportunities, reduce road congestion and strengthen connections between Central Jersey and New York City."