Posted on August 2, 2023
When state officials announced earlier this month that New Jersey had assumed control over regulatory and law enforcement duties at Port Newark/Elizabeth from the recently dissolved Waterfront Commission, it marked the next chapter for the critical commerce hub.
To crack down on crime, mob activity and any other shenanigans, the Waterfront Commission of New York Harbor was established in 1953 under a bi-state compact between New Jersey and New York. But, for many years, New Jersey officials argued that the commission had become obsolete and fought to withdraw from it. That effort was opposed by New York.
In 2018, just before leaving office, then-Gov. Chris Christie signed legislation that would effectively abolish the Waterfront Commission, which was, again, fought by New York. That fight was picked up by Gov. Phil Murphy, who also opposed the commission. The issue kicked around in the judiciary, before ultimately ending up before the U.S. Supreme Court, which unanimously ruled in New Jersey’s favor, issuing a landmark decision in April allowing the state to withdraw.
Justice Brett Kavanaugh wrote the opinion, declaring that each state possesses the sovereign authority to enter into a compact with another state, subject to Congress’ approval.
“The question presented is straightforward: Does the Waterfront Commission Compact allow New Jersey to unilaterally withdraw from the compact notwithstanding New York’s opposition? The answer is yes,” Kavanaugh wrote, noting that the default contract-law rule – that contracts calling for ongoing and indefinite performance may be terminated by either party – supported New Jersey’s position in the case. “In sum, background principles of contract law, reinforced here by principles of state sovereignty and the fact that the states did not intend for the compact to operate forever, indicate that New Jersey may unilaterally withdraw from the Waterfront Commission Compact.”
Murphy was, of course, thrilled with that decision.
“Since the first hours of our time in office, my administration has steadfastly pursued the dissolution of the Waterfront Commission because it was the right thing to do,” Murphy said in April. “Over 90% of commerce at our ports happens on the New Jersey side, and the New Jersey State Police, one of the finest law enforcement agencies in the nation, is more than capable of taking on the commission’s law enforcement and regulatory responsibilities. For many years, frustration over the commission’s operations has been building. I am proud that after a five-year battle in the federal courts, where my administration used every legal tool at our disposal, New Jersey’s sovereign right to govern our ports has been vindicated.”
New York Gov. Kathy Hochul and Attorney General Letitia James did not share the sentiment.
“We are disappointed by the Supreme Court’s decision to allow New Jersey to unilaterally withdraw from the Waterfront Commission. For decades, the Waterfront Commission has been a vital law enforcement agency, protecting essential industries at the port and cracking down on organized crime,” said Hochul and James in an April statement. “We will continue to do everything in our power to combat corruption and crime, protect the health of our economy, and ensure the safety of New Yorkers.”
“We look forward to working with New York to ensure a swift and orderly dissolution of the commission in a way that ensures security and uninterrupted business at New Jersey’s ports,” Murphy added.
But since that point, the exact timing and logistics of the New Jersey State Police’s transition to assuming control was unknown, as the process proceeded without a public announcement. And during that transition period, several notable events drew attention to port operations.
On July 5, a fire engulfed a cargo ship docked at Port Newark, the Grande Costa D’Avorio, which was carrying 1,200 vehicles and 157 containers. A Unified Command was established to pool the response. Officials said the vessel was completing cargo operations of loading automobiles when the fire began. Two Newark firefighters lost their lives while fighting the flames – Augusto Acabou and Wayne Brooks Jr. Earlier this month, Murphy signed Executive Order No. 335, ordering flags to fly at half-staff in recognition and mourning for the fallen firefighters.
Their deaths and the fire also sparked some back-and-forth between the Newark Firefighters Union and city officials, when the union questioned whether the city’s fire department was sufficiently equipped, staffed and funded, especially when it must fight these types of complex, intense fires at the port.
The fire burned until July 11, when the Unified Command announced that it had been contained and extinguished. Officials said that since the response phase concluded, the focus shifted toward investigation and salvage operations.
“At this time, those concerted efforts have gotten us to a place this morning where we can officially declare the fire is out,” said Capt. Zeita Merchant, U.S. Coast Guard captain of the port and federal on-scene coordinator, on July 11. A comprehensive formal investigation is underway to determine causes and contributing factors that led to the shipboard fire, which is being led by the Coast Guard in tandem with federal, state and local entities, to gain a critical and necessary understanding of the incident.
Another notable development during this transition period was a dispute between the International Union of Operating Engineers and the International Longshoremen’s Association, leading to a filing of charges against ILA, two of its locals, and the Port Newark Container Terminal, with the National Labor Relations Board. The charges allege that IUOE Local 825 operators were pulled from a job due to “some sort of dispute, somewhere in the PNCT corporate universe between ILA and IUOE.”
The situations raised questions about what the post-Waterfront Commission port landscape would look like, especially as nothing was publicly announced by state officials, which added to some uncertainty and angst.
More clarity and guidance were offered earlier this month when Murphy, Attorney General Matthew Platkin, and New Jersey State Police Superintendent Col. Patrick Callahan announced that as of July 17, the NJSP Port Security Section had officially taken over the regulatory and enforcement duties previously held by the Waterfront Commission.
The Murphy Administration said that since the landmark Supreme Court ruling, it had worked closely with New York State officials to ensure an orderly transition to have a minimal impact on day-to-day port operations. Officials said planning began well before that ruling, which only accelerated tasks between the two states to maintain the safety and integrity of the port, without disrupting the flow of commerce. The two states have pledged cooperation moving forward through their respective law enforcement agencies.
Since day one of his administration, Murphy said, he has been committed to ending “the outdated Waterfront Commission.”
“And replacing it with a structure suited for the 21st century, and I am proud that our administration has delivered on that promise,” the governor said. “I am grateful to everyone who made this day possible, both for the legal victory and the transition of operations that has been finalized over the last three months.”
NJSP has issued interim guidelines for doing business at the port while it formulates more formal rules and regulations regarding its new oversight functions. While previously issued licenses, registrations and permits will be valid until the expiration date listed on the card, future applications will be processed by the Port Security Section.
Just last week, Murphy spoke further about the issue when he delivered remarks at the ILA’s 56th Quadrennial Convention in Florida. “Thanks to your hard work and efficiency, we have become the busiest port in the nation as logistics companies now prefer to ship their goods through our shores. And that is why we fought to end the Waterfront Commission that oversaw the Port of New Jersey and New York,” said Murphy. “And I want to set the record straight on this. There have been a lot of distortions in the media and the tabloids about what we are trying to do with the commission. I know not everyone here is from New Jersey, but what they wrote insults longshoremen everywhere. We saw some knuckleheaded articles about how New Jersey was trying to ‘empower the waterfront mob’ or how we ‘want the mob to rule the waterfront.’”
Murphy joked that “On the Waterfront” with Marlon Brando was a long time ago. “And yet they are still referring to the movie like it came out yesterday. I am sorry, but we are just not there anymore. That is not what our ports look like today,” Murphy stressed. “So, while the Waterfront Commission made sense in 1953, it does not make sense now. It has long outlived its usefulness.”
The governor said that he heard loud and clear from unions when they said the commission was making it hard to hire new workers, adding unnecessary red tape and slowing down work.
“The last thing we need is to make your jobs harder, which is why our administration used every tool at our disposal to end the commission,” Murphy explained. “To be clear, I was not the only one pushing for this. Every leader in New Jersey was with us on this – including my predecessor – and he is not someone I see eye to eye with on a lot of issues. And I am thrilled that the Supreme Court also agreed with us, unanimously ruling that New Jersey had the right to withdraw from the commission – and this is not a court that agrees on a whole lot unanimously.”
He closed his remarks noting that he was proud the legal battle was over. “And I am happy to report that as of last Monday, the commission has been officially dissolved. Now we can finally begin to turn the page, and together, I look forward to starting a new chapter at our ports,” said Murphy.
