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Thursday, January 15, 2026

Gateway Commission allocates $665M to expand public-private model for Hudson Tunnel Project

The Gateway Development Commission (GDC) Board of Commissioners authorized the expansion of its public-private “delivery partner” model to significantly accelerate construction on the Hudson Tunnel Project (HTP).

The Board’s action delegates authority to execute a new package of task orders, allocating up to $665 million over the next five years to retain and expand the private sector team. This funding will support the existing and growing staff—estimated at 350 to 400 full-time equivalents—provided by the delivery partner, MPA Delivery Partners.

The delivery partner model in action

The delivery partner model allows the GDC, a lean special-purpose entity, to leverage private sector expertise, treating the partner as the “arms and legs” of the agency to manage and execute the complex, multi-faceted project.

Since onboarding MPA Delivery Partners—a joint venture of Parsons Corporation, Arcadis of New York, Inc., and Mace North America Limited—in March 2024, the GDC has achieved several critical milestones:

  • Securing full funding for the Hudson Tunnel Project.
  • Awarding contracts for three construction packages, including the first that involves tunnel boring.
  • Advancing the Tonnelle Avenue Bridge and Utility Relocation Project toward on-time completion.
  • Procuring and overseeing the manufacturing of two tunnel boring machines.
  • Managing the procurement process for four additional construction packages, with two expected to be awarded in the next six months.

GDC CEO Tom Prendergast emphasized the necessity of this approach, stating, “Massive infrastructure projects like the Hudson Tunnel Project require huge teams of highly specialized experts. The delivery partner model enables GDC to bring in the right experts and resources… while remaining a lean, efficient organization.”

A model for future mega-projects

Commissioners praised the success of the public-private partnership, noting it has kept the GDC “nimble, flexible, and innovative while staying on scope, schedule, and budget.”

The expanded partnership is designed to provide all staffing and services needed to support delivery of the Hudson Tunnel Project through the end of the initial contract term in 2030. The delivery partner model has a proven international track record, having been used to complete the infrastructure for the 2012 London Olympics ahead of schedule and under budget, and on the Oregon Department of Transportation’s bridge replacement program.

Joe Marie, senior vice president for MPA Delivery Partners, stated that the collaboration 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.”

The Hudson Tunnel Project is the cornerstone of the Gateway Program, a comprehensive rail investment set to improve and add capacity to the busiest section of the Northeast Corridor, which handles over 2,200 train movements and 800,000 passenger trips daily.

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