Head of Gateway rail tunnel project stepping down as real construction about to kick in

Kris Kolluri, the CEO and president of the Gateway Development Commission, is stepping down, NorthJersey.com has learned.

Kolluri, who has overseen the bistate agency in charge of the $16 billion Hudson River rail tunnels project, informed the commission's co-chairs, Alicia Glen, Balpreet Grewal-Virk and Tony Coscia, of his resignation in a letter dated July 18.

“The progress we have made together is historic, meaningful and measurable,” Kolluri wrote in the letter, obtained by NorthJersey.com. “Given the anticipated start of major tunnel construction this fall, it is the right time for me to step down and let the next leader oversee the construction phase.”

Kolluri’s decision comes just 10 days after he and federal transit officials signed a $6.88 billion full funding grant agreement , the final piece of the financial puzzle that gives the agency the ability to begin construction in earnest on the lengthy and complicated project.

In just 18 months on the job, Kolluri got three “early” construction contracts underway on both sides of the Hudson River and hired the critical project delivery partner that will manage the program, which includes building a new two-track tunnel between North Jersey and Manhattan and repairing the 114-year-old existing tunnel damaged by age and Superstorm Sandy.

His last day will be Aug. 16.

Kolluri was considered uniquely qualified

Govs. Kathy Hochul and Phil Murphy, of New York and New Jersey, respectively, jointly named Kolluri for the job in 2022. Kolluri was considered uniquely qualified for the role after serving as commissioner of the New Jersey Department of Transportation when the ARC project, the predecessor to Gateway , was being developed, before then-Gov. Chris Christie canceled it in 2010.

Kolluri was chosen to get the fledgling GDC quickly into shape so it would be eligible to receive the necessary federal funds to get the Gateway project started. He staffed up the agency with technical expertise and laid the agency’s governance foundation so the Federal Transit Administration could trust the agency to administer billions of dollars in federal funds.

“The task at GDC was to work with the team to take (the Hudson Tunnel Project) further than ARC Tunnel had ever advanced, i.e. secured by full funding, to build a coalition and framework for the management of the Hudson Tunnel Project between the states and Amtrak, and to start major construction in New Jersey and New York,” Kolluri wrote.

About $11 billion in federal dollars is being directed to the project, covering about 70% of the project’s estimated cost with the balance being split by New York, New Jersey and the Port Authority of New York and New Jersey.

What's next for Gateway

Kolluri’s departure comes just weeks after the GDC’s chief program officer and deputy chief program officer announced their resignations, key figures who helped the GDC develop a “strong governance framework,” Kolluri said at the time of their exits.

His successor will take over as at least two more tunneling contracts are expected to be awarded before the end of the year and as leadership and accountability will be needed to ensure all of the project’s contractors meet deadlines to keep the project on time and on budget.

The new tube is expected to open in 2035, and repairs on the old tunnel are expected to be completed in 2038.

The urgency of the project has been felt most acutely this summer as Amtrak and NJ Transit trains have struggled to maintain consistent and reliable service with heat waves taking a toll on their aging equipment. The Gateway project would help replace decades-old wiring and power systems, while also providing some resilience when trains break down.

This article originally appeared on NorthJersey.com: Head of Gateway rail tunnel project stepping down as real construction about to kick in