GDC awards $1.29B Hudson River tunnel contract, advancing Gateway heavy civil work

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New York Construction Report staff writer

The Gateway Development Commission (GDC) has awarded a $1.29 billion contract for Package 1C of the Hudson Tunnel Project to the Traylor/Walsh/Skanska joint venture, advancing construction of the new rail tunnel under the Hudson River.

Package 1C: The Hudson River Tunnel Section covers excavation of twin tunnel tubes beneath the Hudson River and installation of the tunnel liner and floor system. Work is expected to begin in the coming months following issuance of a notice to proceed.

With the award, six of the project’s 10 construction packages are now either underway or completed. GDC said that, together with Package 1A: The Palisades Tunnel and Package 1B: The Manhattan Tunnel—both already under construction—all tunnel boring and core heavy civil work for the new tunnel is now either awarded or in progress.

The project is part of the broader Gateway Program, which will add a new rail crossing under the Hudson River to expand capacity along the Northeast Corridor.

Scope of Package 1C

Package 1C includes construction of two tunnel tubes, each about 7,250 feet long, extending from the Hudson County Access Shaft in Weehawken, N.J., to the 12th Avenue Access Shaft on Manhattan’s West Side.

Contractors will use two tunnel boring machines designed to operate through mixed ground conditions, including rock, soft soil and stabilized earth created by the Hudson River Ground Stabilization project.

The scope also includes construction of nine cross passages between the tunnel tubes, ground stabilization beneath Hudson Bergen Light Rail infrastructure, and installation of an underground support system for a section of the Willow Avenue Bridge linking Weehawken and Hoboken.

The Traylor/Walsh/Skanska joint venture was selected through a competitive procurement process reviewed by an evaluation panel that included representatives from GDC, New York state, New Jersey Transit, the Port Authority of New York and New Jersey and Amtrak.

The GDC board approved the market case estimate for the package and authorized the agency’s chief executive officer to issue a notice to proceed.

New York Gov. Kathy Hochul said the project will improve commutes and create jobs.

“Faster commutes and thousands of good-paying jobs — that is the promise of the Gateway Tunnel,” Hochul said. “Advancing this critical contract is yet another big step toward realizing the immense opportunity of Gateway.”

New Jersey Gov. Mikie Sherrill said the award reflects continued progress on the project.

“Today’s action by the GDC makes it clear that the Gateway Tunnel is back on track,” Sherrill said. “It moves one of the most critical pieces of this project forward.”

U.S. Sen. Chuck Schumer said federal funding must continue to move without disruption.

“Gateway continues to move forward,” Schumer said. “We are watching like a hawk to make sure that the funds are allocated without delay or disruption.”

GDC officials said awarding Package 1C marks two key milestones: more than half of construction packages are now active or complete, and all tunnel boring work for the new Hudson River crossing is now under contract or underway.

GDC Chief Executive Officer Tom Prendergast said the project has reached a major construction phase.

“We’re firing on all cylinders now and the progress we are making is plain to see at our construction sites on both sides of the river,” Prendergast said. “It is critical we maintain this momentum going forward.”

Officials estimate the Hudson Tunnel Project will generate tens of thousands of construction jobs and billions of dollars in economic activity across the region.

With all tunnel boring contracts now awarded, the project moves deeper into active excavation on both the New Jersey and Manhattan sides, along with continued work on supporting infrastructure and systems coordination.

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