MPA secures USD 665m extension for Hudson Tunnel Project

MPA Delivery Partners — a joint venture of Mace, Parsons Corporation, and Arcadis — has been awarded a USD 665 million, 4.5-year contract extension by the Gateway Development Commission (GDC) to continue managing the successful delivery of the Hudson Tunnel Project (HTP).

 

The extension underscores GDC’s confidence in the delivery partnership, which has maintained steady progress on the nation’s most critical rail infrastructure investment. The project remains on schedule and is expected to create more than 95,000 jobs across the United States and generate over USD 19 billion in economic activity.

 Hudson Tunnel Project: a project driving growth across the U.S.

The Hudson Tunnel Project is a central component of the Gateway Program, which aims to modernise and expand the rail connection between New York and New Jersey. It is regarded as the most urgent rail project in the country, ensuring the reliability and resilience of the Northeast Corridor (NEC) — the busiest passenger rail line in North America.

In addition to creating thousands of direct jobs in the New York–New Jersey region, the project is generating opportunities for American suppliers of steel, aggregates, rail components, and ventilation systems across multiple states. Companies from North Carolina, Texas, Pennsylvania, Ohio, Alabama, Colorado, and Tennessee are supporting the project’s supply chain, reflecting what GDC calls a “national model of American innovation and investment.”

With multiple active construction sites progressing simultaneously, work is advancing on schedule toward the completion of the new two-tube Gateway Tunnel in 2035, followed by rehabilitation of the existing 115-year-old tunnel by 2038.

“A once-in-a-generation project”

Senior Project Executive for MPA Delivery Partners, Joe Marie, described the contract extension as recognition of the team’s success in maintaining progress and collaboration on one of the most complex infrastructure undertakings in U.S. history.

“This is a once-in-a-generation project and a true collaboration between the public and private sectors that will serve as a model for delivering future mega-infrastructure projects around the world,” he said.

“We are united in our goal of successfully completing this critical project, which will transform the Northeast Corridor and deliver billions of dollars of economic growth to the U.S. economy. GDC and MPA function as a fully integrated partnership, working closely together to ensure the Hudson Tunnel Project is completed on time and within budget.”

Transforming the Northeast Corridor

The Hudson Tunnel Project is designed to replace and modernise critical infrastructure that has been in service since 1910. The project includes:

  • Construction of a new, two-tube rail tunnel under the Hudson River
  • Rehabilitation of the existing tunnel, which sustained significant damage during Hurricane Sandy
  • Installation of nine miles of new passenger rail track
  • Modernisation of systems to improve operational reliability and passenger safety

Once completed, the new tunnel will double cross-Hudson capacity, improving resilience, performance, and redundancy for both Amtrak and NJ TRANSIT services.

The project will not only benefit the Northeast Corridor but also strengthen national connectivity, reducing the risk of disruption to a corridor that supports 20% of the U.S. GDP.

Proven delivery partner model

MPA was first selected as delivery partner for the Hudson Tunnel Project in February 2024, introducing a model that has proven successful in delivering major transport infrastructure projects across Europe, the Middle East, and Asia.

The delivery partner model integrates client and contractor teams from the outset, creating a unified structure that enables faster decision-making, shared accountability, and cost efficiency. The approach has been credited with improving transparency and ensuring that large-scale projects are completed within budget and schedule constraints.

MPA’s continued role reflects the model’s success on the Hudson Tunnel Project. The venture brings together:

  • Mace, a global consultancy and construction firm known for managing major infrastructure programmes including HS2 and Heathrow Terminal 5 in the UK.
  • Parsons Corporation, an American engineering and technology leader with extensive experience in rail systems and tunnelling.
  • Arcadis, an international design and consultancy firm specialising in sustainable infrastructure and environmental solutions.

Together, the three partners are providing integrated programme management, engineering, and construction oversight to ensure the project meets its long-term targets for delivery, safety, and sustainability.

A new chapter for U.S. infrastructure

The Hudson Tunnel Project forms the centrepiece of the Gateway Program, which represents a total investment exceeding $16 billion. Alongside its transportation benefits, the programme supports the Biden-Harris Administration’s goal of rebuilding American infrastructure, improving sustainability, and fostering domestic job creation.

By improving reliability for the Amtrak and NJ TRANSIT networks, the new tunnel will underpin economic resilience for the entire Northeast — home to nearly 50 million residents and a critical corridor for business, education, and government.


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