NY, NJ commit to fund their share for Hudson River rail tunnel project


New York Governor Andrew Cuomo and New Jersey Governor Chris Christie have announced commitments to fund 100% of their share of the Gateway Hudson Tunnel Project.

The State of New York will contribute $1.75bn and NJ Transit $1.9bn. The Port Authority of New York and New Jersey Board of Commissioners will fund $1.9bn, taking the total investment to $5.55bn.

In 2015, a framework agreement was finalised under which the federal government has agreed to fund 50% of the Gateway Tunnel project, which is part of the Northeast Corridor that connects New York and New Jersey.

The framework also sought creation of Gateway Development Corporation (GDC), which will be responsible for the development of Gateway.

The $12.7bn Gateway Hudson Tunnel Project comprises a new two-track tunnel Portal North Bridge project, Hudson Yards Concrete Casing and the rehabilitation of the existing Amtrak North River Tunnel.

The time-sensitive elements of the Gateway project, construction of the new tunnel and the Hudson Yards Concrete Casing, will together cost $11.1bn of the $12.7bn project.

The Amtrak North River Tunnel, the only intercity passenger rail crossing into New York City from New Jersey, was damaged due to inundation during Hurricane Sandy in October 2012.

Moreover, lack of redundant capability across the Hudson River into Penn Station New York results in a single point-of-failure, and any service outage can affect 200,000 daily commuter and intercity passenger trips on the Northeast Corridor (NEC).

Phase 1 should be completed to prevent closure of one of the two tubes of the existing Amtrak North River Tunnel prior to construction and completion of a new Hudson River Tunnel.

Early construction on the Portal North Bridge project began in October 2017 and major construction is scheduled to commence in 2018.

Rehabilitation of the existing tunnels is expected to be taken up in 2026, which will cost $1.6bn of which local share will be $800m.

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