Skanska has secured a significant role in one of the largest rail infrastructure projects in the United States, joining a joint venture to construct a key segment of the Hudson Tunnel Project in New York.
The company announced it has partnered with Traylor Bros., Inc. and Walsh Construction to deliver Package 1C of the Hudson Tunnel Project under a contract valued at $1.29 billion. Skanska’s share of the contract totals $363 million, which will be recorded in its U.S. order bookings for the second quarter of 2026.
The contract was awarded by the Gateway Development Commission, the entity overseeing the broader effort to modernize and expand rail capacity along the Northeast Corridor.
The project involves constructing two parallel single-track rail tunnels beneath the Hudson River, a critical crossing point connecting New Jersey and Manhattan. Each tunnel will extend approximately 2,200 meters (7,250 feet), linking the Hudson County Access Shaft in Weehawken, New Jersey, to the 12th Avenue Access Shaft on Manhattan’s West Side.
In addition to tunnel excavation, the scope includes installation of tunnel linings and floors, as well as the construction of nine cross passages connecting the two tubes. Crews will also perform ground stabilization work near the Hudson-Bergen Light Rail and complete permanent underpinning of the Willow Avenue Bridge.
The work is expected to begin in the coming months following a formal notice to proceed.
The Hudson Tunnel Project is a central element of a broader initiative to improve reliability and capacity along the heavily traveled Northeast Corridor, which serves hundreds of thousands of daily rail passengers.
The new tunnels are designed to supplement and eventually relieve the aging existing tunnel infrastructure, which has faced ongoing maintenance challenges and capacity constraints. By adding new crossing capacity under the Hudson River, the project aims to enhance service reliability and accommodate future ridership growth between New Jersey and New York City.
Industry observers note that projects of this scale require complex coordination between multiple contractors and public agencies, as well as advanced engineering techniques to address geological and environmental challenges associated with tunneling beneath a major waterway.
With contracts now in place, the project is moving into the construction phase, marking a significant milestone for the Gateway Program.
Skanska said the contract award reflects its continued involvement in major U.S. infrastructure projects and its expertise in large-scale tunneling and transportation construction.
The Hudson Tunnel Project is expected to generate substantial economic activity and construction employment over the coming years, while delivering long-term benefits for regional mobility and infrastructure resilience.
Originally reported by Skanska in PR News Wire.
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