Three firms share US$1.29bn Hudson Tunnel section in New York

A view of the Tonnelle Avenue Bridge on site of the Hudson Tunnel Project on Monday, 13 April 2026, in North Bergen. (Image: USA Today Network via Reuters Connect)

Three contractors – Skanska, Traylor Bros, Walsh Construction – have signed a contract for the construction of the Hudson Tunnel Package 1C in New York, USA.

The project involves building new passenger rail tunnel tubes beneath the Hudson River by boring two parallel, single track tunnels.

Each tunnel will be about 2.2km (7,250 feet) long, running from the Hudson County Access Shaft in Weehawken, New Jersey, to the 12th Avenue Access Shaft on Manhattan’s West Side.

Skanska, whose share is worth about US363 million, said the work also includes installing the tunnel lining and floors, building nine cross passages between the tubes, performing ground stabilization near the Hudson-Bergen Light Rail, and completing permanent underpinning of the Willow Avenue Bridge.

Work will commence “in the coming months”, following notice to proceed.

The award comes despite continued wrangling over access to federal funding for the $16 billion Hudson Tunnel project. Package 1C is the third of three tunnelling projects to be awarded and one of the most technically complex.

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