Question for shrewed New Yorkers about the Port Authority

[MrSpice]

Not too many people will know how to answer this question or care about this issue. Here it is:

The Port Authority of NY and NJ that runs all 3 NY area airports, the PATH train, many bridges and tunnels. Contrary to my idea of a government-controlled beauracracy it seems to be quite efficient. Also, I saw and heard several of their paid advertisements on radio and TV where they emphasize their breadth of their services. I also heard many ads for their Airtrain services at both JFK and Newark airports.

Question: this is a public self-sustainming agency. Why do they pay for advertising? What reason do they have to advertise and/or make money? Is it a compensation structure that drives the executives to want to maximize profits?

There's no practical reason for this question - I am just curious how this organization works.

Thanks.

[ZippyTheChimp]

The PANYNJ is often described as a quasi (to some degree) public agency, in that it is operated by commissioners appointed by elected officials.

However, the agency receives no public funding. All revenue derives from its operations. Like any business, it advertises.

http://www.panynj.gov/AboutthePortAuthority/Governance/

[Schadenfrau]

I think the word you're looking for is "shrewd," but it doesn't particularly apply in this case. Knowledgeable would be more appropriate.

The Port Authority is a corporate agency and is ineligible to receive tax money, so they count on customers utilizing their services to pay the bills. Thus, their need to advertise like any other company.

[MrSpice]

The PANYNJ is often described as a quasi (to some degree) public agency, in that it is operated by commissioners appointed by elected officials.

However, the agency receives no public funding. All revenue derives from its operations. Like any business, it advertises.

http://www.panynj.gov/AboutthePortAuthority/Governance/

I read this info. What I am curious about is - to put it simply - why does the comissioner care? In other words, I am trying to understand the incentive behind their actions. Does the comissioner get a bonus based on how much the agency makes on a particular year?

[macreator]

The PA has offices around the world in London, Tokyo, Hong Kong, Singapore, Shanghai in order to promote trade with the NY & NJ region and deal with international trading partners.

[Schadenfrau]

The incentive behind the actions is that the Port Authority needs revenue to exist. Not everyone uses PA offerings because they're forced to, some people are just daytrippers.

Think about all the ads you hear touting the subways and railroads, especially around the holidays.

[ZippyTheChimp]

I read this info. What I am curious about is - to put it simply - why does the comissioner care? In other words, I am trying to understand the incentive behind their actions. Does the comissioner get a bonus based on how much the agency makes on a particular year?The commissioners are appointed by the governors, so they usually have political ties to them. They also generally come from the private sector within New York and New Jersey.

If they screw up the agency, they will be dismissed, and more important, will not be seen as attractive job candidates for corporations who do business with New York and New Jersey.

[Ninjahedge]

I think the word you're looking for is "shrewd," but it doesn't particularly apply in this case. Knowledgeable would be more appropriate.

Beat me to it.

You think the PA needs to be "tamed" ;)

[MrSpice]

The incentive behind the actions is that the Port Authority needs revenue to exist. Not everyone uses PA offerings because they're forced to, some people are just daytrippers.

Think about all the ads you hear touting the subways and railroads, especially around the holidays.

Schadenfrau - you posted 2 replies and both miss the point of my question.

Zippy's point about the future of those executives in the private sector seems to be the answer

If they screw up the agency, they will be dismissed, and more important, will not be seen as attractive job candidates for corporations who do business with New York and New Jersey.

[tmg]

They advertise for the same reason that huge companies, like GE and TRW, advertise on public affairs shows. They're not trying to sell their products, they're trying to bolster their public image.

The PA needs to have a strong and positive public image for many reasons:

1. In order to get elected officials to support a favorable legislative agenda.

2. To help them compete against other ports for the business of shippers and logistics companies, which can decide to rely on other regions' infrastructure for their international shipping if NY is perceived to be inefficient.

3. To help them compete against higher-paying private sector firms for talented workers.

4. To encourage investors to buy their bonds.