The Gateway Development Commission has awarded a $1.29 billion contract for the Hudson River Tunnel segment of the Hudson Tunnel Project, a major component of the broader Gateway Program. The contract advances the final tunneling section connecting New Jersey and Manhattan.

The project scope includes construction of two parallel tunnel tubes, each approximately 7,250 feet long, beneath the Hudson River. The tunnels will connect the Hudson County access shaft in Weehawken, New Jersey, to the 12th Avenue shaft on Manhattan’s West Side. The scope also includes nine cross passages, ground stabilization work, and structural support beneath existing infrastructure, including the Hudson Bergen Light Rail corridor and the Willow Avenue Bridge.

The total project cost for the Hudson Tunnel Project is $16 billion. The Gateway Development Commission awarded the contract to a joint venture of Traylor Bros. Inc., Walsh Construction Co., and Skanska USA Civil. The project has entered early construction phases, with initial activities such as utility relocation, jet grouting, and ground improvement expected to begin in 2026. Tunnel boring activities will follow in later phases as part of the full construction schedule.

The project will establish a continuous two-track rail tunnel between New Jersey and Manhattan, increasing capacity along the Northeast Corridor. It will improve reliability for passenger and freight rail services and strengthen a critical transportation link between the two states.