The proposed 20,000-square-foot facility will be able to handle up to three ferries and will have 700 parking spaces, including some with chargers for electric vehicles. Once ferry service is operational, South Amboy — which is on NJ Transit’s North Jersey Coast Line — will be the only place in New Jersey to offer ferry and rail services within walking distance of each other, according to the city.

“This is great news for New Jersey and for commuters who rely on passenger ferries every day. This funding will go a long way to ensure that our transportation infrastructure is able to accommodate the increased demand in ferry service and will help reduce vehicle traffic between New Jersey and Manhattan,” Pallone said.

South Amboy Mayor Fred Henry said in a statement that the city has been working for permanent ferry service for about two decades, and he thanked Pallone for helping to secure these new funds.

“This ambitious project has not been without complications,” Henry said. “However, we are finally able to move forward with construction of this major transportation improvement that will benefit our residents, and the residents of Middlesex County.”

The ferry terminal will be a two-story building, and city officials hope the second story will attract a restaurant to take advantage of the space with waterfront views. The terminal will be alongside the Manhattan Beach Club, a 1,875-unit luxury apartment complex that is currently under development.