
NEW YORK/NEW JERSEY — The Gateway Development Commission has awarded a major $1.29 billion construction contract for a key portion of the Hudson Tunnel Project, marking another milestone in one of the nation’s most significant transportation infrastructure efforts.
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The contract, known as Package 1C: The Hudson River Tunnel Section, was awarded to a joint venture of Traylor Brothers, Walsh Construction and Skanska. Work is expected to begin in the coming months.
With this latest award, six of the 10 construction packages that make up the broader Hudson Tunnel Project are now completed or underway. Officials said contracts covering all major tunnel boring and core structural work have now been awarded or are in progress.
“Faster commutes and thousands of good paying jobs – that is the promise of the Gateway Tunnel and why we fought so hard to keep this project moving forward,” said Kathy Hochul.
Mikie Sherrill added, “Today’s action by the GDC makes it clear that the Gateway Tunnel is back on track after we stopped President Trump from illegally blocking funding to the project. It moves one of the most critical pieces of this project forward.”
The Hudson Tunnel Project is widely viewed as a critical upgrade to the Northeast Corridor rail system, supporting both commuter and intercity passenger traffic.
Package 1C represents the longest stretch of tunnel construction within the overall project. The work involves boring two new tunnel tubes beneath the Hudson River, each approximately 7,250 feet long, connecting an access shaft in Weehawken, New Jersey, to another on Manhattan’s West Side.
Construction will utilize two specialized tunnel boring machines designed to handle mixed ground conditions, including rock, soft soil and stabilized earth.
In addition to tunneling, the contract includes:
Officials said the project will generate tens of thousands of jobs and drive billions of dollars in economic activity across the region.
Project leaders emphasized the importance of maintaining momentum as construction advances.
“Awarding the contract for Package 1C: The Hudson River Tunnel Section is not only an important step toward delivering a critical investment in our nation’s rail network, but also a signal… that the Hudson Tunnel Project is back on track,” said project leaders in a joint statement.
GDC CEO Tom Prendergast noted that years of planning and coordination have led to this stage, with visible progress now underway on both sides of the river.
Once completed, the new tunnel is expected to improve reliability, reduce congestion and modernize a vital transportation link used by hundreds of thousands of daily riders.
The Hudson Tunnel Project remains one of the most urgent infrastructure initiatives in the United States, aimed at replacing aging rail tunnels and strengthening regional and national mobility.
Originally reported by NJB Magazine.