Hudson Tunnel Project — Package 1C

The Hudson Tunnel Project is the centerpiece of the Gateway Program — a $16 billion rail infrastructure initiative to construct twin new passenger rail tunnels beneath the Hudson River between North Bergen, New Jersey, and New York Penn Station, then rehabilitate the existing 1910-era North River Tunnels.

Package 1C is the prime contract for building the new twin-bore tunnels themselves and was awarded to a Traylor / Walsh / Skanska joint venture on April 27, 2026 at a value of approximately $1.29 billion.

Project Scope

• Twin single-track passenger rail tunnels under the Hudson River
• Tunnel boring machine launch from North Bergen, NJ toward Manhattan
• Cross-passages, emergency egress systems, and tunnel finishes
• Integration with existing Hudson Yards Concrete Casing and Tonnelle Avenue tunnel sections

Current Status

As of May 2026, tunnel boring is underway on the Tonnelle Avenue tunnel section. On the Hudson Yards Concrete Casing Section 3, two concrete pours totaling 7,300 cubic yards have been completed. The first tunnel boring machine for the river crossing is scheduled to launch from North Bergen toward Manhattan in mid-to-late 2026.

Why It Matters

The existing North River Tunnels date to 1910 and were significantly damaged by Hurricane Sandy in 2012. They carry every Amtrak Northeast Corridor and NJ Transit train between New Jersey and New York Penn Station — the busiest passenger rail bottleneck in the United States. The new tunnels will provide redundancy and allow the existing tunnels to be taken offline one at a time for full rehabilitation. Completion of the full Hudson Tunnel Project is targeted for 2035.

Key Stakeholders

• Owner: Gateway Development Commission
• Engineering Lead: WSP
• Construction: Traylor Bros. / Walsh Construction / Skanska USA Civil (joint venture)