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Port Authority of New York and New Jersey (PATH) plans soon to make the biggest investment in its 40-year history — $809 million to replace or rehabilitate its entire passenger-car fleet.

The agency recently approved a program to purchase 246 new cars, and replace or rehabilitate 94 cars.

The program also includes preliminary engineering, design, testing and demonstration for a new signal system, and plans to renovate the Harrison Car Maintenance Facility.

The improvements are part of the authority’s efforts to help redevelop lower Manhattan, according to a prepared statement.

PATH plans to begin receiving car-design proposals in October and signal-system engineering proposals in second-quarter 2004. The first new cars are expected to be in service by the end of 2006; preliminary signal work, complete by second-quarter 2006.