NEW YORK CITY—The Port Authority of New York and New Jersey board of commissioners Thursday agreed to partner with the federal government in the development of the Gateway Tunnel Project by creating a development corporation to oversee construction of the massive passenger rail project.
The agency's board accepted the challenge from Govs. Andrew Cuomo and Chris Christie and US Sens. Chuck Schumer (D-NY) and Cory Booker (D-NJ) to help oversee construction of a new trans-Hudson rail link to improve passenger rail service between New Jersey and New York, as well as along the Northeast Corridor.
The Board authorized the executive director to consult with the US Dept. of Transportation and the National Railroad Passenger Corp.—better known as Amtrak—and report to the board as soon as possible any additional steps, including any further study necessary to establish a development corporation that will oversee construction and execution of the tunnel project.
The Board's action also called for agency staff to work closely with the federal government to identify federal grants and maximize financing options, including the use of low-interest loans under federal programs, as well as finding ways in cooperation with NJ Transit to expedite needed environmental and other necessary approvals for the project.
The existing Amtrak trans-Hudson tunnels are more than 100 years old and are in need of rehabilitation after they were inundated with seawater during Superstorm Sandy in 2012. Approximately 200,000 riders use the tunnels daily as part of the roughly 750,000 passengers on the Northeast Corridor. If they were taken out of service for even one day, it is estimated that the cost to the nation would be $100 million in transportation-related impacts and productivity losses.
"The Port Authority has been called on many times in its nearly 100-year history to develop and build great projects," says Port Authority chairman John Degnan. "Once again, we are asked to take a leading role in one of this generation's most important transportation project and we accept this responsibility. We will work closely with our federal partners to move this project expeditiously forward."
Adds Port Authority vice chairman Scott Rechler, "It's absolutely essential for the region that we move forward as quickly as possible in constructing a new rail link between New York and New Jersey. With the federal government's commitment to pay for half of the effort, we are taking a big step forward in bringing this critical project to reality. With today's action, we have started down the road of creating the entity to receive federal grant funds and develop a plan to match this funding for the construction of a new tunnel."
The Gateway Tunnel Project was jumpstarted last month by the aforementioned New York and New Jersey political representatives when they reached an agreement under which the federal government pledged to fund 50% of the project cost. The two states of New York and New Jersey will provide the remainder of the funding.
Today's board action makes no funding commitment on behalf of the Port Authority and the agency's exact role in the construction, operation and maintenance of the project have yet to be determined.
Commissioners Richard Bagger and Michael Fascitelli will oversee this effort as a working group of the Board to provide day-to-day guidance to the executive director and Port Authority staff in pursuing the board's mandate.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
