Progress on a major rail infrastructure project linking New Jersey and New York has reached a new stage, with the team behind the Palisades Tunnel Project marking a milestone ahead of tunnel boring machine operations. SPC Construction, The Lane Construction Corporation and FlatironDragados joined the Gateway Development Commission and other project stakeholders for the event, announced Oct. 6, 2026.
The three companies are working through the Schiavone Lane Dragados joint venture, which was awarded a $466 million contract in 2024 to build the Palisades Tunnel section. The work is part of the wider Hudson Tunnel Project, a $16 billion investment intended to add a new rail tunnel beneath the Hudson River and support rehabilitation of the existing tunnel.
The Palisades contract covers the first mile of twin rail tunnels on the New Jersey side of the Hudson River. Each tunnel will extend approximately 5,100 feet and have an internal diameter of 25 feet, 2 inches. The tunnels will be excavated using hard-rock tunnel boring machines and lined with precast concrete segments.
The machines are expected to advance approximately 30 feet per day. The scope also includes six cross passages connecting the two tunnels and a 120-foot-deep Hudson County Access Shaft, which will provide a route to remove the machines after excavation is complete.
The existing Hudson River rail tunnel entered service in 1910. The broader programme is designed to provide a modern rail connection while allowing the century-old infrastructure to be rehabilitated.
The existing tunnel serves more than 200,000 passenger trips each weekday, with over 450 Amtrak and NJ TRANSIT trains operating along the Northeast Corridor. The new tunnel infrastructure is intended to improve rail reliability and resilience while enabling additional capacity and reducing dependence on the existing tunnel as a single critical link.
The joint venture brings together expertise in tunnelling, transportation infrastructure, mechanical systems and complex civil construction from its three partners. The companies are coordinating their technical teams and project leadership to deliver the tunnel works.
Major rail tunnel projects require specialised excavation equipment, precise underground construction and coordination across multiple public agencies and contractors. The Palisades section represents an important part of a wider investment aimed at improving the resilience of a heavily used passenger rail corridor. For infrastructure owners and contractors, the project demonstrates the scale of planning and technical coordination required to expand capacity while maintaining the long-term viability of existing transport assets.
Source: Lane.
