The Gateway Development Commission (GDC) reached a definitive “point of no return” in the construction of the nation’s most critical infrastructure project. On Monday, the GDC Board officially awarded the contract for Package 1C: The Hudson River Tunnel Section to a joint venture of Traylor, Walsh and Skanska (TWS).
The $1.29 billion contract covers the most technically challenging stretch of the Gateway Program: boring two new 7,250-foot-long tunnel tubes directly beneath the Hudson River. This segment will link the Hudson County Access Shaft in Weehawken to the 12th Avenue Access Shaft on Manhattan’s West Side.
With the award of Package 1C, the “core and shell” phase of the Hudson Tunnel Project is now fully under contract. This milestone means that all three major tunneling segments—the Palisades Tunnel (1A), the Manhattan Tunnel (1B), and now the Hudson River Tunnel (1C)—are either in progress or moving toward immediate mobilization.
Key project components of Package 1C include:
- Dual-Tube Boring: Utilizing two specialized, mixed-face Tunnel Boring Machines (TBMs) designed to navigate the complex silt and rock beneath the riverbed.
- Cross Passages: Construction of nine safety passages connecting the two tubes.
- Infrastructure Protection: Stabilizing the ground beneath the Hudson-Bergen Light Rail tracks and strengthening the Willow Avenue Bridge between Weehawken and Hoboken.
The announcement was marked by a notable shift in the regional political landscape. New Jersey Gov. Mikie Sherrill, who took office earlier this year, emphasized that the project’s momentum is a direct result of overcoming previous federal roadblocks.
“Today’s action makes it clear that the Gateway Tunnel is back on track,” Sherrill said. “It is another big step towards delivering on the most urgent infrastructure project in the nation for both the tens of thousands of workers who will build it and the hundreds of thousands of riders who rely on this connection every day.”
Gov. Kathy Hochul of New York echoed the sentiment, noting that the project is already “firing on all cylinders,” driving billions in regional economic activity and creating a pipeline of high-paying union jobs.
The Traylor/Walsh/Skanska JV was selected following a rigorous competitive review involving experts from NJ TRANSIT, the Port Authority of NY & NJ and Amtrak. The joint venture brings together three heavyweights in global infrastructure, a necessity for a project that must bore through a “block of stabilized earth” created by the ongoing Hudson River Ground Stabilization (HRGS) project.
| Hudson Tunnel Project Status | Progress |
| Total Construction Packages | 10 |
| Packages In-Progress/Completed | 6 |
| Tunnel Boring Contracts Awarded | 100% |
| Contract Value (Package 1C) | $1.29 Billion |
GDC CEO Tom Prendergast confirmed that the TWS joint venture is expected to begin work in the coming months. As construction sites hum with activity on both sides of the river, the project remains the “North Star” for Northeast Corridor commuters who have long suffered from delays caused by the century-old North River Tunnels.
“We have now awarded contracts for all the tunnel boring needed to build the new tunnel tubes,” Prendergast stated. “We are keeping this momentum to ensure the busiest section of the Northeast Corridor finally gets the resiliency it requires.”


