wnol.info January 21 2018


Governors push for federal share of gateway project

January 21 2018, 12:25 | Alonzo Simpson

Governors push for federal share of gateway project

Governors push for federal share of gateway project

NY will fund $1.75 billion while New Jersey Transit will add $1.9 billion to the $1.9 billion already committed by the board of commissioners of the Port Authority of NY and New Jersey for a total of $5.55 billion.

The US$5.55bn fully funds the local share for the most urgent, time-sensitive elements of the Gateway Hudson Tunnel project: the construction of a new tunnel and the Hudson Yards Concrete Casing, which total US$11.1bn of the total US$12.7bn construction cost. The tunnel is a key part of the Northeast Corridor, which connects NY and New Jersey.

This would follow guidelines originally set in 2015 which would have the federal government pay for 50 percent of the costs.

"It positions the project to immediately compete for federal Capital Investment Grant funds", said Christie.

The Hudson River Tunnel project is critical to the regional and national economy, according to New York, New Jersey and Amtrak officials.

"The Gateway Tunnel is critical to the long-term vitality of the entire Northeast region and one of the most important infrastructure projects in the country", Cuomo said in a statement.

"The Gateway Tunnel is critical to the long term vitality of the entire Northeast region and one of the most important infrastructure projects in the country", said NY governor Andrew Cuomo.

If one tube in the existing two-tube Hudson River tunnel fails before the project is completed, train service between New Jersey and NY would be reduced by 75 percent, according to Amtrak.

NY plans to allocate money annually over 35 years to service a $1.75 billion loan, state budget director Robert Mujica Jr. wrote in a letter to the Department of Transportation on Wednesday.

NY and New Jersey would pay half the cost.

The Trump administration has not expressed whether it would honor or back away from the previous administration's agreement, though transit experts are anxious that the White House does not see eye-to-eye on the project's importance. The estimated per-trip cost to NJT rail customers using the Trans-Hudson tunnels will be $.90 beginning in 2020 and increase to $1.70 in 2028 and $2.20 in 2038.

NY said it would raise its portion through bond offerings while New Jersey would hike charges on NJ Transit rail passenger trips across the Hudson.

Amtrak, which owns the tunnels and most of the tracks along the corridor, has estimated the existing tunnel into NY could fail in 10 to 15 years due to saltwater damage caused by Superstorm Sandy in 2012. The tubes would allow for repairs to the existing tunnels, which Hurricane Sandy damaged.



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