After the September 11, 2001 attacks on the World Trade Center destroyed the PATH terminal located there cross-Hudson passenger capacity was greatly reduced, and ferry service was expanded to compensate. NY Waterway borrowed heavily to acquire new vessels to add new routes and add more runs to schedules. City and state agencies contracted the construction of new ferry terminals to be leased to private operators, of which the West Midtown is one. With the restoration of rapid transit service, ridership numbers dropped significantly. The Port Authority of New York and New Jersey brokered a deal to avoid bankruptcy and disruption of service.
