Hudson Tunnel Project now at 'a point of no return'

The basics:

• The Hudson Tunnel Project received a Full Funding Grant Agreement of $6.88 billion from the Federal Transit Administration, plus an additional $4.06 billion in loans from the Build America Bureau.



• The project will result in four tracks between New Jersey and New York, which are desperately needed as rail meltdowns in recent weeks have demonstrated.



• The new tunnel will be in service by 2035 and the full rehabilitation of the existing tunnel is expected to be completed by 2038.

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A project that had been repeatedly left for dead appears to be on its way. At a ceremony in New York last week, the Gateway Development Commission announced the signing of a Full Funding Grant Agreement with the Federal Transit Administration that will provide $6.88 billion for the Hudson Tunnel Project as well as the closing of $4.06 billion in Railroad Rehabilitation and Improvement Financing loans from the Build America Bureau to fund the local share of the project.

With that funding, the GDC has now secured the entire $16 billion commitment needed to complete the project, which includes $12 billion in federal funding the largest federal funding commitment to a rail transportation project in modern history.

The federal share represents a 70/30 split between the federal government and local project partners: New Jersey, New York, and the Port Authority of New York and New Jersey .

The new tunnel will result in four tracks between New Jersey and New York, which are desperately needed as rail meltdowns in recent weeks have demonstrated along the most critical stretch of rail in the country.

Some key features and particulars of the project include:

• A new double-track tunnel between the Bergen Palisades and Manhattan;



• The rehabilitation of the North River Tunnel that was damaged during Superstorm Sandy;



• A new concrete casing at Hudson Yards to allow the new tunnel to connect to New York Penn Station;



• The creation of 95,000 jobs and $19.6 billion in economic activity.

 

MPA Delivery Partners, a joint venture of Mace, Parsons Corp. and Arcadis, serve as the project’s delivery partner. The new tunnel will be in service by 2035 and the full rehabilitation of the existing tunnel is expected to be completed by 2038.

Financially on track

During the signing ceremony, elected leaders from all levels of government, officials and project stakeholders gathered to mark the historic milestone in getting this project on track financially.

“After years of planning and persistence, the Hudson Tunnel Project’s days of uncertainty are finally behind us,” said Gateway CEO Kris Kolluri. “For 23 months, we worked tirelessly to complete the funding puzzle for this vital project. Today we have secured the funding needed to see this project through.”

The stakeholders who spoke or issued statements about the historic funding acknowledged the buy-in of the project from the very top of the federal government from President Joe Biden and his administration on down to the efforts between all the different parties, being on the same page and making this day a reality.

“Today marks a significant milestone on the path to ensuring the success of our nation’s most vital infrastructure project,” said Gov. Phil Murphy. “Thanks to the leadership of our partners both in Congress and across the Hudson, our federal government will be covering over 70% of the total cost of the Gateway Tunnel Project. As the main artery of our nation’s economy continues to be pushed to its limits, we are now one step closer to transforming the 100-year-old infrastructure under the Hudson River.”





“I am proud of the work we have done with President Biden, Secretary Buttigieg, Amtrak, and our partners in New Jersey to advance this project,” said New York Gov. Kathy Hochul. “And I thank Majority Leader [Chuck] Schumer and the New York Congressional delegation for providing their support.”

Schumer, D-N.Y., has been a long-time advocate for the project and was instrumental in getting the funding over the finish line. “For a long time now, the Gateway project has been my passion,” the senator said. “It’s a labor of love. And after many false starts and obstacles placed in our way, Gateway is full speed ahead with billions from FTA ready to go and be used for critical work and construction.”

“Using funds from the President’s Infrastructure law, we are building a new tunnel that improves train travel for millions of Americans and revitalizes a rail corridor that is essential to so much of the nation’s economy,” said Transportation Secretary Pete Buttigieg. “And as one of the cathedrals of American infrastructure, this project can demonstrate America’s capacity to build big things together in the 21st Century.”

“It is important to realize that as we improve New Jersey Transit and Amtrak service in and out of Manhattan, we will improve train and transit service for a region that impacts more than 20% of the nation’s economy,” said acting FTA Administrator Veronica Vanterpool. “FTA is proud to invest in the Hudson Tunnel Project so these rails can continue to carry millions of people who keep the American economy humming.”

A much-needed project

Kevin , president and CEO of NJ Transit which has been under fire for everything from its financial woes that led to the corporate transit fee funding mechanism in this budget cycle, recent fare hikes and service difficulties said that as a primary user of the current tunnels, no one knows better than the agency and its riders about the desperate need for the new tunnels.

“Today marks the culmination of securing funding for a project that stands as the most consequential undertaking of our generation and for the next 100 years in this region,” said. “The commitment from all levels of government local, state, and federal underscores the profound understanding of this project’s significance.”

“The new Hudson River Tunnel will supercharge the rail connections across our region and to the nation, improving and expanding rail service in ways we’ve only been able to dream about in the past” said Amtrak Chair and GDC Vice Chair Tony Coscia, another longtime supporter of the project. “We celebrate this milestone today because of the many leaders and partners that came together for a better future.”

“The Port Authority is committed to continue working with our federal and local partners, including through our funding support announced today, in making the nation’s most vital and impactful rail project a reality,” said Port Authority Chairman Kevin O’Toole.

Today marks the culmination of securing funding for a project that stands as the most consequential undertaking of our generation and for the next 100 years in this region.

Kevin , president and CEO, NJ Transit

U.S. Sen. Cory Booker, D-N.J., described the project as transformative in a number of ways. “Improving reliability for the hundreds of thousands of commuters who depend on this vital transit link every day,” he said. “This critical investment in our infrastructure will benefit not only New Jersey and New York but the entire country by enhancing connectivity, creating jobs, and driving economic growth.”

'Light at the end of the tunnel'

Balpreet Grewal-Virk, New Jersey GDC commissioner and co-chair, stressed that this project will ensure that the hundreds of thousands of commuters traveling between New Jersey and New York will have the reliable rail service they deserve which sets the stage for long-term economic growth on both sides of the Hudson. “Finalizing the FFGA and RRIF loans for this project is a key milestone that enables us to confidently say there is a light at the end of the tunnel for commuters struggling with unpredictable service,” she said.

Kolluri noted that GDC has not missed a deadline while navigating the complex federal grant process affirming his thanks to all of the partners in the process. “We look forward to continuing to work together through the construction process,” he said.

In a statement, MPA Delivery Partners congratulated GDC on the milestone. “MPA was selected to serve as the delivery partner for this once-in-a-generation project in February 2024 and looks forward to working with the Gateway Development Commission on unlocking the full economic and societal potential of the Hudson Tunnel Project and delivering this important project for the people of New York and New Jersey,” the firm said.

In addition to the work underway which includes the Tonnelle Avenue Bridge and Utility Relocation Project in New Jersey and the Hudson Yards Concrete Casing Section 3 Project in New York the GDC said the actions taken last week will enable it to move forward with heavy construction and tunnel boring activity.

In the coming weeks, heavy construction is set to begin with the Hudson River Ground Stabilization Project, which will stabilize the Hudson riverbed on the Manhattan side to enable the Tunnel Boring Machines to excavate the new tunnel.

GDC says that by the end of this year, it will have awarded contracts for more than $5 billion in construction activity, including contracts to build sections of the tunnel passing through the Palisades in going through the Manhattan bulkhead under Hudson River Park and will have ordered the first Tunnel Boring Machine.

“History will remember those who led the effort to get us to a point of no return. And those who build this project,” said Kolluri. “Our friends in labor with whom we have already two project labor agreements, the thousands of men and women intuitively understand that we’re about to build a portal of opportunity and not just portals of concrete and rebar.”

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