Gateway Development OKs $665M Contract To JV to Managing Hudson Tunnel Project
NEW YORK—MPA Delivery Partners, the joint venture of Mace, Parsons Corporation and Arcadis, announced on Sept. 30 that the team was awarded a $665-million, 4.5-year contract extension by the Gateway Development Commission to continue managing the successful delivery of the Hudson Tunnel Project.
The HTP is progressing on-schedule and expected to create more than 95,000 jobs around the United States and generate more than $19 billion in economic activity. In addition to the thousands of employees in the New York/New Jersey region, the project is driving demand for U.S. suppliers of steel, aggregates, rail and track, and ventilation systems. With multiple active construction sites managing different portions of the HTP, the project is on-schedule for the new Gateway Tunnel completion in 2035, and the existing tunnel’s rehabilitation by 2038.
New York GDC Commissioner and Co-Chair Alicia Glen, New Jersey GDC Commissioner and Co-Chair Balpreet Grewal-Virk, and GDC Amtrak Commissioner and Vice Chair Tony Coscia said in a statement, “The delivery partner model is an innovative approach to project delivery that has brought together the best of the industry to make sure the Hudson Tunnel Project stays on track.
This public-private partnership has made GDC nimble, flexible and innovative while staying on scope, schedule and budget. We’re proud that GDC is using this model to drive performance in service of the hundreds of thousands of riders who travel on the Northeast Corridor every day.
“This 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,” said Joe Marie, senior project executive for MPA Delivery Partners. “We are united in our goal of successfully completing this critical project, which will transform the Northeast Corridor and deliver billions of dollars of economic growth to the U.S. economy. GDC and MPA function as a fully integrated partnership, working closely together to ensure the Hudson Tunnel Project is completed on time and within budget.”
GDC awarded the delivery partner contract for the Hudson Tunnel Project to MPA Delivery Partners in March 2024 via a competitive procurement process. The initial contract term ends in 2030, with the option for three subsequent three-year renewals. Since awarding the delivery partner contract, GDC has executed a series of task orders for its initial work with MPA.
The GDC Board action on Sept. 30 delegates authority to GDC to execute a package of task orders that will enable the delivery partner team to provide all services and staffing needed to support delivery of the Hudson Tunnel Project through the end of the initial contract term in 2030. The resolution allocates up to $665 million over the next five years for this new scope of work. This funding will support the existing and growing team of employees and subcontractors MPA has hired to work on the Hudson Tunnel Project, which is estimated at 350 to 400 full-time equivalents.
Since onboarding MPA Delivery Partners GDC has: secured full funding for the Hudson Tunnel Project; awarded contracts for three construction packages, including the first construction project that involves tunnel boring; advanced the first Hudson Tunnel Project construction package—the Tonnelle Avenue Bridge and Utility Relocation Project—toward on time completion in the coming weeks; procured and overseen manufacturing of the two tunnel boring machines that will be used to build the section of the new tunnel in New Jersey and managed the procurement process for four additional construction packages, including two that will be awarded in the next six months.
The Hudson Tunnel Project is the cornerstone of the Gateway Program and is widely considered the most urgent rail infrastructure project in the United States. The transformational project involves building a brand new two-tube rail tunnel under the Hudson River and rehabilitating the existing 115-year-old tunnel as well as nine miles of new passenger rail track between New York and New Jersey to improve passenger rail service and enhance the reliability of the Northeast Corridor.
Published: October 16, 2025.