FlatironDragados Joint Venture Begins Tunneling Work on Palisades Tunnel Project

Highlights

• The Schiavone Lane Dragados JV has begun the tunneling phase of the Palisades Tunnel Project.
• The joint venture received a $466 million contract for the project in 2024.
• Two tunnel boring machines will construct twin rail tunnels on the New Jersey side of the Hudson River.
• Each tunnel will extend approximately 5,100 feet and have a 25-foot-2-inch interior diameter.
• The work is part of the broader $16 billion Hudson Tunnel Project connecting New York and New Jersey.

The start of tunnel excavation marks a major construction milestone for the Hudson Tunnel Project, a large-scale rail infrastructure program intended to improve capacity and reliability along the Northeast Corridor. A joint venture involving SPC Construction, Lane Construction and FlatironDragados has begun the next phase of the Palisades Tunnel Project in New Jersey.

The Schiavone Lane Dragados JV was awarded a $466 million contract in 2024 to deliver the Palisades Tunnel work.

Twin Tunnel Construction Begins

The project covers the first mile of twin rail tunnels on the New Jersey side of the Hudson River. Two hard-rock tunnel boring machines will excavate parallel tunnels, each measuring approximately 5,100 feet long.

The tunnels will be lined with precast concrete segments and will have an interior diameter of approximately 25 feet, 2 inches. The TBMs are expected to advance at a rate of roughly 30 feet per day.

Six cross passages will connect the two tunnels. The project also includes a new Hudson County Access Shaft extending approximately 120 feet below ground. The shaft will support construction operations and provide a means of removing the TBMs after excavation is complete.

Palisades Tunnel's Role in Hudson Rail Improvements

The Palisades Tunnel is part of the larger Hudson Tunnel Project, which carries an overall investment of approximately $16 billion. The broader program includes construction of a new rail tunnel beneath the Hudson River and rehabilitation of the existing tunnel, which entered service in 1910.

The existing Hudson River rail crossing handles more than 200,000 passenger trips on weekdays across Amtrak and NJ TRANSIT services. The new infrastructure is intended to provide additional rail capacity and improve system resilience while addressing the risks associated with relying on the existing tunnel.

Why It Matters

The Palisades Tunnel work demonstrates the scale and technical complexity involved in expanding rail infrastructure in a densely developed Northeast corridor. The project combines hard-rock tunneling, precast segment installation, underground access construction and cross-passage work as part of a broader effort to strengthen a critical regional rail connection.

Source: Flatiron Dragadoss.