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Three firms win $665m delivery partner deal on Hudson Tunnel megaproject

The project involves building a brand new two-tube rail tunnel under the Hudson River and rehabilitating the existing 115-year-old tunnel The project involves building a brand new two-tube rail tunnel under the Hudson River and rehabilitating the existing 115-year-old tunnel (Image courtesy of Mace Consult)

A joint venture of Mace, Parsons Corporation and Arcadis has secured a $665 million contract extension to continue managing delivery of the Hudson Tunnel Project, the centrepiece of the Gateway Program linking New York and New Jersey, US.

The Gateway Development Commission (GDC) awarded MPA Delivery Partners a further four-and-a-half-year deal, extending its role as construction manager on the scheme. MPA was first appointed in February 2024 under the delivery partner model, which GDC has said provides greater efficiency and collaboration on mega-infrastructure projects.

The Hudson Tunnel Project involves construction of a new two-tube rail tunnel under the Hudson River and rehabilitation of the existing 115-year-old tunnel. It also includes nine miles of new passenger track to improve service reliability for Amtrak and NJ Transit along the Northeast Corridor.

With multiple active construction sites, the new tunnel is scheduled for completion in 2035, followed by rehabilitation of the existing tunnel by 2038. The project is forecast to support more than 95,000 jobs nationwide and generate over $19bn in economic activity, according to GDC.

Joe Marie, senior project executive for MPA Delivery Partners, described the scheme as a “once-in-a-generation project” that will “transform the Northeast Corridor and deliver billions of dollars of economic growth to the US economy.”

Davendra Dabasia, Mace Consult CEO, said the delivery partnership approach ensured “very efficient project execution and optimal economic value.”

The Hudson Tunnel Project is widely regarded as the most urgent rail infrastructure project in the US and is expected to set a benchmark for future large-scale transit schemes.

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