OP-ED: More delay's ahead for $3.1 billion MTA Metro-North Bronx East Penn Station Access project

A recent announcement by the New York Metropolitan Transportation Authority (MTA) Chair Janno Lieber that the $3.1 billion MTA Metro-North Rail Road Bronx East Penn Station Access project beneficial use date will slip from late 2027 to some time in 2028 was disappointing. Both the Federal Transit Administration (FTA) and Federal RailRoad Administration (FRA) provided funding based upon the promise that this was a shovel ready project. The prior beneficial use date previously slipped from early to late 2027. Construction contracts were previously awarded several years ago. Due to multiple delays in advancement of this project, the final price tag might grow beyond $3.1 billion. 

Metro-North Railroad had initiated a federal environmental study for the project more than 20 years ago. The cost of the project at the time was estimated at $350 million, with the state of Connecticut funding $100 million and the state of New York funding the remaining $250 million. It subsequently grew to $600 million.  

Ten years ago, former New York Gov. Andrew Cuomo in his State of the State speech in January 2014 announced his support for this project. The MTA said at the time that it could be built by 2019. Both claimed the project's estimated cost would be $1 billion. It subsequently over coming years grew to $1.6 billion, then $2.87 billion in 2022 and currently $3.1 billion today.

Based on the latest schedule delay, contractors may submit requests for additional reimbursement based on delay claims against the MTA. These claims would be based on inadequate track outages or force account (Amtrak, MTA or Metro-North employee support) necessary for completion of work, according to the agreed upon master project construction schedule.  

The original base line construction schedule was agreed upon shortly after the contract award. The MTA may file claims for financial credits against the contractor for not supplying sufficient workers to complete a project, based upon the agreed upon master construction schedule or a reduction in project scope of work. All of this has to be negotiated between the MTA and the contractor before the final resolution is reached. After all the above is completed, the MTA will release a contract retainage.  

This is the final payment to the contractor, which represents 100 percent completion of any project. Depending upon the complexity of any capital project, the timeline between 98 percent beneficial use or substantial completion and actual 100 percent completion can average from six months to a year or more. The real project completion date could easily end up some time in 2029.

The honest true final project cost will only be known until the MTA makes public the cost of borrowing that supports project financing. The MTA always hides the cost of debt service payment for borrowing. It is spread out over many years, buried on the operating side of the agency budget.

Amtrak resources are also committed to other projects along the Northeast Corridor (NEC) between Washington, D.C., and Boston for years to come. Three of these in the Metro New York area include the $1.6 billion New Jersey NEC Portal Bridge, $1.6 billion East River Tunnel and $16.8 billion Gateway Tunnel Hudson River Phase One projects. This does not include ongoing routine maintenance at Penn Station Newark, Penn Station New York, Hudson and East River tunnels, the $2 billion Maryland Susquehanna River Bridge, the $4.7 billion 1.4 mile Baltimore Potomac Tunnel, the $827 million Connecticut River Bridge and other stations, tracks, bridges, tunnels and facilities along the NEC. Who knows how this latest project delay will impact Amtrak’s assignment of resources such as force account and track outages to meet the new 2028 forecasted beneficial use date. 

Amtrak faces the ongoing challenge of providing sufficient numbers of employees to work on these key state of good repair, system expansion, routine maintenance and safety projects while supporting work on the MTA Metro-North Bronx East Penn Station Access project at the same time. Residents, commuters, future riders, taxpayers, local community planning board members, public officials and project supporters need to ask FTA, FRA, MTA and Metro-North Railroad why these new delays were not resolved prior to receipt of federal funding and award of construction contracts. Will the MTA and Metro-North Railroad file delay claims against Amtrak for not providing sufficient timely force account and track outages?   
 
What is the current status for receipt of a project recovery schedule from both the construction contractor and Amtrak? This would include revised interim weekly, monthly and yearly milestones that would confirm how the new 2028 date will be met. What additional costs will the MTA, Metro-North Railroad and private contractors incur due to lack of previously scheduled Amtrak force account and track outage support? The MTA and Metro-North Railroad will incur additional costs for having to keep their own project engineers and independent engineering consultants who provide project oversight many more months than originally anticipated during the construction phase.

Transparency on the part of New York Gov. Kathy Hochul, MTA Chair Lieber and Metro-North Rail Road President Catherine Rinaldi in providing answers is required. Current and future new Bronx Metro North commuters, taxpayers, local residents, MTA Board members, local, state and federal elected officials and project funding agencies such as the FTA and others should expect nothing less.