GDC Board of Commissioners finalizes agreement between funding partners on Hudson Yards Concrete Casing project

The Gateway Development Commission (GDC) Board of Commissioners passed a resolution that finalizes the agreements between funding partners on the Hudson Yards Concrete Casing – Section 3, the vital portion of the Hudson Tunnel Project linking the new Hudson Tunnel directly to Penn Station New York.

The resolution allows the work on the Hudson Yards Concrete Casing - Section 3 to now move into construction, which is expected to begin in 2023.

In addition, GDC also highlighted other early work projects for the new Hudson Tunnel beginning construction or procurement this year, including the Tonnelle Avenue Overhead Bridge and Utility Relocation Project in New Jersey, where construction is expected during 2023; as well as the Hudson River Ground Stabilization project and the construction of the Palisades Tunnel, where the procurement processes are anticipated to launch in the coming weeks.

“This is the year the Hudson Tunnel Project becomes real,” said Alicia Glen, New York commissioner and GDC co-chair. “With early construction starting in both New York and New Jersey, we are telling the millions of riders who rely on this route that help is on the way.”

“GDC is making real progress this year pushing vital components of the project forward. I am particularly proud of our focus on working with the private sector to make sure this project is delivered efficiently and expeditiously,” said Balpreet Grewal-Virk, New Jersey commissioner and GDC co-chair.

In addition to the early work, GDC Board of Commissioners were also updated on the overall progress already made on the Hudson Tunnel Project in the early months of 2023, including:

• Enhancing the Contract Packaging for the “Core and Shell” portion of the new tunnel to provide a more robust and competitive pool of potential bidders
• Ongoing engagement with the private sector, via a Market Sounding forum, and series of one on one follow up meetings that led to the contract packaging updates and an event detailing and receiving feedback on those changes.
• Applying for substantial additional federal grant funding through the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Program and Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program to help fund portions of the project. Amtrak was awarded $292.17 million for the project through the National Infrastructure Project Assistance Grant Program. 
• Applying for a substantial Federal-State Partnership for Intercity Passenger Rail Grant Program grant available under the Infrastructure Investment and Jobs Act, which would reduce overall costs of the project.
• Continuing to work hand-in-hand with the Federal Transit Administration to advance the project through the Capital Investment Grants Program process, to receive a Full Funding Grant Agreement for the bulk of the project’s federal funding during 2024.

“Moving forward with early work in partnership with the federal government is vital to this project’s success. Our federal support will reduce costs for the local partners and help ensure the Hudson River Tunnel is a strong, resilient part of the Northeast Corridor for a century to come,” said Tony Coscia, Amtrak commissioner and GDC vice-chair.

The GDC Board of Commissioners passed several other resolutions to continue to build the capacity of the GDC and to advance the Hudson Tunnel Project, including:

• Approving $2.5 million in available stipends for up to four firms to bid on the Hudson Tunnel Ground Stabilization project
• Approving a schedule of GDC Board meetings for the remainder of 2023.
• Establishing Committees of the Board, including Audit, Governance and Operations, and Project Delivery.
• Amending the Hudson Tunnel Project Development Agreement to incorporate a process for consideration of alternative technical concepts, amend the approval process for certain categories of deviations from design standards and specifications and expand the membership of procurement evaluation panels.

“We promised this would be the year that the Hudson Tunnel Project moves from planning to reality, and that is exactly what today’s board action achieves. With the agreements and funding now in place, we’ll see construction start this year on the critical Concrete Casing portion of the project that links the new tunnel to Penn Station. Along with our other early works, the Hudson Tunnel Project is now taking shape more and more each day,” said GDC CEO Kris Kolluri.