Hudson Tunnel Project seeks project delivery partner

13 December 2022


The Gateway Development Commission (GDC) is to release an RFQ for a project delivery partner (PDP) for the Hudson Tunnel Project.

The RFQ is expected to be issued “in the coming days”.

The project involves building the new 2.4 mile two-tube Gateway Tunnel under the Hudson River, between Newark, New Jersey, and New York City’s Penn Station, and refurbishing Amtrak’s existing 112-year-old North River rail tunnel, which was badly damaged by Hurricane Sandy in 2012. Amtrak’s Northeast Corridor is the most heavily-used passenger rail line in the US.

GDC says engaging a private delivery partner will dramatically increase GDC’s technical, financial and legal capacities to manage and deliver the Hudson Tunnel Project, including enhancements to project planning, programming, design management and construction management capabilities. In addition, potential performance incentives in the partnership will increase discipline in delivering the project efficiently.

“This innovative approach to delivering the Hudson Tunnel Project is the kind of outside-the-box thinking we must bring on this critical project,” said New Jersey commissioner and GDC co-chair Balpreet Grewal-Virk. “Private industry has told us they are ready to partner and help make sure the Gateway Hudson Tunnel Project is built.”

New York commissioner and GDC co-chair Alicia Glen said engaging the private sector to leverage the best ideas in the industry was central to the project’s successful delivery. “We will continue to look for smart opportunities to deliver the project on time and on budget,” she said.

Amtrak chairman and GDC vice-chair Tony Coscia said the PDP approach “preserves flexibility and allows for opportunities to introduce innovative thinking into the project”.

The PDP model is fairly new in the US but it has been used in other countries, such as the London 2012 Olympic and Paralympic Games, the UK’s HS2 high-speed railway and Sydney Metro in Australia.

Earlier this year it was announced that the Hudson Tunnel Project’s cost had rocketed by US$2bn to US$16bn, and the start of construction pushed back more than a year to autumn 2024. This means the new tunnels should be in operation by 2035 and the tunnel refurbishment completed by 2038.

The GDC attributed the increased price tag to inflationary costs and supply chain issues.