A major and final bureaucratic hurdle has been cleared by the Gateway Tunnel project after the U.S. Army Corps Of Engineers issued a permit to allow construction of the tunnel and tracks through the Meadowlands and under the Hudson River.
The permit was announced Wednesday morning that allows construction of the $12.3 billion project to build two new tunnels and rehabilitate the exiting 111-year old tunnels to start in summer 2023, once funding is secured.
The permits are the “last major federal approval” needed to make a 2023 date construction start date more realistic for skeptical commuters, some who questioned if they’d ever live to see it built.
The Federal Infrastructure Permitting Dashboard shows a big checkmark that the Hudson Tunnel Project has gotten all federal and environmental permits. Amtrak and NJ Transit were co-applicants for the U.S. Army Corps of Engineers Permit.
“The Gateway Project receiving permit approval means commuters across the region are one step closer to faster, more reliable rail service,” said Zoe Baldwin, New Jersey Director, Regional Plan Association. “This is a great step in the right direction, and shows the federal government’s commitment to advancing this critical project. Now we need an improved financial rating from the Federal Transit Administration as soon as possible to keep the momentum going.”
The tunnel increases capacity allowing more trains to be sent to and from Penn Station, opening up access to NJ Transit lines that don’t go to New York. The tunnels are a key part of Amtrak’s high speed rail and Northeast Corridor upgrades. It would end delays due to infrastructure problems with the old tunnels built in 1910.
“This step brings us much closer to the beginning of construction on the Hudson Tunnel Project, which is part of the single-largest critical infrastructure effort in the nation,” said Gov. Phil Murphy in a statement. “I am looking forward to continuing to work with our partners in the Biden Administration, New York, Amtrak, and our Congressional delegation on completing the entire Gateway Program.”
Last month Gateway Development Corporation officials said federal financing to build the $12.3 billion Gateway rail tunnel under the Hudson River could be in place by the end of 2022, with construction possibly starting in summer 2023.
Gov. Kathy Hochul said the tunnel was important for the economic vitality of New York, which produces 20% of the nation’s gross domestic product.
“The Gateway project will help support the economic prosperity of New York and the rest of the country for years to come, which is why we need to get this project right and get it moving,” she said in a statement.
Construction of new tunnels and rehabilitation of the existing tunnels is estimated to be completed in 2035, GDC officials said in November.
“The rapid pace of Federal approvals not only signals the tremendous coordination between different government agencies at the federal and state levels, but also the prioritization of the Hudson Tunnel Project and its anticipated impact on the economic well-being of the Northeast Corridor and the entire nation,” said Tony Coscia, Amtrak board chairman.
The cost stands at $10.1 billion for new tunnel construction and $2.2 billion to rehabilitate the old tunnels, for a grand total of $12.3 billion. But Gateway Development Corp officials warned that delays to the project increase the cost due to inflation.
But funding remains the next major hurdle. The project’s ranking needs to be raised by the Federal Transit Administration to qualify for federal grants. The tunnel project had received a low rating under the Trump administration that precluded it from qualifying for federal funding.
Railroad and other infrastructure loans that would comprise New Jersey and New York’s share of the project also need to be applied for and approved.
The states received a boost from recent changes to those programs that allow the loans to be paid off over 75 years, considering the lifespan of major railroad infrastructure projects, instead of an original 35-year payback period.
A “letter of interest” to start the loan application process for an estimated $6 billion in infrastructure loans is being prepared and could be submitted in the next couple of months,
The permits cap a year of major progress for the Gateway Project. In May, the project to augment and rehabilitate the two 110-year old tunnels with two new ones received a long-awaited environmental approval that will move New York and New Jersey one step closer to building them after a three-year-delay from a promised 2018 date.
Amtrak officials have maintained the old tunnels have to be completely taken out of service to be gutted to repair damage from Hurricane Sandy in 2012, after new tunnels are built.
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Larry Higgs may be reached at lhiggs@njadvancemedia.com.
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