At the time, rail lines terminated on the New Jersey side of the harbor, while ocean shipping was centered on Manhattan and Brooklyn.

[2][11] The idea for the Port Authority was conceived during the Progressive Era, which aimed at the reduction of political corruption and at increasing the efficiency of government.

With the Port Authority at a distance from political pressures, it was able to carry longer-term infrastructure projects irrespective of the election cycles and in a more efficient manner.

[12] The Port District is irregularly shaped but comprises a 1,500-square-mile (3,900 km2) area roughly within a 25-mile (40 km) radius of the Statue of Liberty.

Using its ability to issue bonds and collect revenue, the Port Authority has built and managed major infrastructure projects.

[14] Construction began in 1927 on the George Washington Bridge, linking the northern part of Manhattan with Fort Lee, New Jersey, with Port Authority chief engineer, Othmar Ammann, overseeing the project.

At the time, airports were operated as loss leaders, and the city was having difficulties maintaining the status quo, losing money and unable to undertake needed expansions.

The Port Authority was the overseer of the World Trade Center, hiring the architect Minoru Yamasaki and engineer Leslie Robertson.

To meet the Port Authority's requirement to build 10 million square feet (930,000 m2) of office space, the towers would each be 110 stories tall.

[14] Other critics objected to the idea of this much "subsidized" office space going on the open market, competing with the private sector.

A final agreement was made that the Port Authority would make annual payments in lieu of taxes, for the 40% of the World Trade Center leased to private tenants.

[23] When the World Trade Center twin towers were completed, the total cost to the Port Authority had reached $900 million.

[25] In 1986, the Port Authority sold rights to the World Trade Center name for $10 to an organization run by an outgoing executive, Guy F. Tozzoli.

[27] The terrorist attacks of September 11, 2001, and the subsequent collapse of the World Trade Center buildings impacted the Port Authority.

With the Port Authority's headquarters located in 1 World Trade Center, it became deprived of a base of operations and sustained a great number of casualties.

[29] In rescue efforts following the collapse, two Port Authority police officers, John McLoughlin and Will Jimeno, were pulled out alive after spending nearly 24 hours beneath 30 feet (9.1 m) of rubble.

The toll lane closures caused massive Fort Lee traffic back-ups, which affected public safety due to extensive delays by police and emergency service providers and disrupted schools due to the delayed arrivals of students and teachers.

[36][37][38] As of March 2014[update], the repercussions and controversy surrounding these actions continue to be under investigation by the Port Authority, federal prosecutors, and a New Jersey legislature committee.

The Port Authority's chairman, David Samson, who was appointed by Governor Christie, resigned on March 28, 2014, amid allegations of his involvement in the scandal and other controversies.

[39] In April 2018, Caren Turner resigned from the Board of Commissioners after an ethics investigation revealed that her attempt to intervene in a traffic stop for her daughter included what the Port Authority described as "profoundly disturbing" conduct.

[48] Each governor appoints six members to the Board of Commissioners, who are subject to state senate confirmation and serve overlapping six-year terms without pay.

After the previous headquarters were destroyed in the September 11, 2001 attacks, the Port Authority moved into 225 Park Avenue South in Midtown Manhattan,[54] with employees divided between offices in New York and New Jersey,[55] before returning to the World Trade Center in 2015.

[58] Members of the Board of Commissioners are typically business titans and political power brokers who maintain close relationships with their respective governors.

[74][72] As of August 2022, the Port Authority led the country when considering only containers and not bulk materials such as petroleum and grain.

[79] As of 2014, three ExpressRail systems (Elizabeth, Newark, Staten Island) were in operation with the construction of a fourth at Port Jersey underway.

[73] The Port Authority operates the PATH rapid transit system linking lower and midtown Manhattan with New Jersey, the AirTrain Newark system linking Newark International Airport with NJ Transit and Amtrak via a station on the Northeast Corridor rail line, and the AirTrain JFK system linking JFK with the Howard Beach subway station and the Jamaica subway and Long Island Rail Road stations.

[73] However, by April 2015, the agency was considering divesting itself of the properties to raise revenue and return to the core mission of supporting transportation infrastructure.

[87] The Port Authority also has plans to buy 340 new PATH cars and begin major expansion of Stewart International Airport.

[91][92] The PANYNJ announced in March 2023 that it was deferring funding for the Newark Airport extension to a future capital plan.

[97] As part of the reconstruction, the AirTrain LGA people mover system was to have been built between the airport and Willets Point, Queens.