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Hudson River rail tunnels

Gateway Tunnel Cost Estimate Balloons; Completion Date Pushed Back to 2038

The cost of building the new two-tube Gateway Tunnel between New York and New Jersey and rehabilitating the existing trans-Hudson rail tunnels is now estimated at $16 billion, up by $2 billion from a year ago. In an updated financial plan for the project, officials at the bi-state Gateway Development Commission blamed inflation and supply chain issues. 

Simultaneous with bumping up the cost estimate, the agency pushed back the start of construction. The hope is now that a federal funding agreement will be signed in spring 2024 and construction will begin the following fall. That’s more than a year later than the start date projected a year ago. 

Under that timeline, the new tunnels are expected to open by 2035, with rehab of the existing tunnels completed three years later. “We’ll continue to work to mitigate these costs and speed up aspects of the project,” said GDC CEO Kris Kolluri. 

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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