Port Authority & Amtrak Put Down $70 Million For Construction of New Rail Tunnels

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The Gateway Rail Project — a new rail tunnel connecting New Jersey to midtown Manhattan — will receive a $70 million cash injection from Amtrak and the Port Authority. The $23.9 billion project is intended to replace the two existing tunnels, which were severely damaged by Hurricane Sandy. Closing just one of the current tunnels, which NJ Transit uses to shuttle about 105,000 passengers from New Jersey to New York, could be disastrous for commuters and the economies of both states.

As a result, the Port Authority, Amtrak, NJ Transit, and the U.S. Department of Transportation (DoT) announced an agreement to work together to expedite the project. Under the agreement, the Port Authority and Amtrak will each contribute $35 million toward preliminary engineering work necessary for the project. With the help of the DoT, the agencies will also apply for federal credit programs so they can more quickly access low-interest loans to help finance the project. Amtrak estimates the new tunnels could be in service by 2030. —The Record, Bloomberg Business

(Image: The Record)