Skanska JV lands $1.29 billion Hudson River tunnel contract in N.Y.
NEW YORK (UI) — A joint venture led by Skanska has secured a major contract to construct a key underground section of the Hudson Tunnel Project, advancing one of the largest rail infrastructure efforts in the U.S.
The contract, awarded by the Gateway Development Commission, covers construction of twin passenger rail tunnels beneath the Hudson River, connecting New Jersey to Manhattan.
The scope includes boring two parallel single-track tunnels, each approximately 7,250 feet long, along with installation of tunnel linings, floors and nine cross passages between the tubes.
Additional work will include ground stabilization near existing transit infrastructure and structural support work tied to nearby bridge elements.
Construction is expected to begin in the coming months following final project approvals.
Previous progress
Last year, project officials reached a key milestone with the completion and testing of the first tunnel boring machines (TBMs) for the Hudson Tunnel Project.
In December 2025, the Gateway Development Commission said the machines were ready for shipment to New Jersey, where they would be assembled and prepared for tunneling operations. Each TBM is designed to excavate at a rate of about 30 feet per day while installing concrete lining behind it.
Officials also reported progress on related construction activities, including excavation of launch areas, ground stabilization work and early concrete construction, positioning the project to move into full-scale tunneling.
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