Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Streetsblog.net

What’s the Actual Cost of Amtrak’s Trans-Hudson Gateway Project?

Five years after New Jersey Governor Chris Christie spiked the ARC transit tunnel to redirect money to roads, politicians are finally discussing how to go about upgrading rail capacity between Jersey and Midtown Manhattan, currently limited to a pair of century-old tunnels under the Hudson River. But just about every announcement related to the proposed Gateway Project comes with a different price tag.

rail_tunnels
Amtrak needs to be clear about how much it will cost to upgrade transit capacity between Midtown Manhattan and New Jersey, currently limited to these 100-year-old tunnels, and what's included in the package. Photo: NJ Transit via Second Avenue Sagas
false

Alon Levy at Pedestrian Observations says it's time for clarity.

[E]ach time Gateway is the news, there usually seems to be a fresh cost escalation. Is it a $10 billion project? A $14 billion project? A $16 billion project? Or a $25 billion project? And what is included exactly? Amtrak does not make it clear what the various items are and how much they cost; I have not seen a single cost estimate that attempts to establish a baseline for new Hudson tunnels without the Penn Station South component, which would provide a moderate short-term boost to capacity but is not necessary for the project. The articles I’ve seen do not explain the origin of the $25 billion figure, either; it may include the tunnel and full four-tracking of Newark-New York, or it may include additional scope, for example Amtrak’s planned vertical circulation for a future (unnecessary) deep cavern for high-speed rail (see picture here).

Against this background, we see scare stories that Gateway must be built for reasons other than capacity and ridership. The old tunnels are falling apart, and Amtrak would like to shut them down one track at the time for long-term repairs. The more mundane reality is that the tunnels have higher maintenance costs than Amtrak would like since each track can only be shut down for short periods, on weekends and at night. This is buried in technical documents that don’t give the full picture, and don’t give differential costs for continuing the present regime of weekend single-tracking versus the recommended long-term closures. The given cost for Sandy-related North River Tunnel repairs is $350 million, assuming long-term closures, and it’s unlikely the present regime is billions of dollars more expensive.

I am reminded of the Tappan Zee Bridge replacement: the existing bridge has high maintenance costs due to its age and poor state, but the net present value of the maintenance cost is $2.5 billion and that of the excess maintenance cost is less, both figures well below the replacement cost. The bridge itself is structurally sound, but in popular media it is portrayed as structurally deficient. This relates to the problem of heavyweight politicians, for the Tappan Zee Bridge replacement is Cuomo’s pet project.

Elsewhere on the Network: Real talk from Arlington, Virginia, police for bike lane-blocking drivers, via Commute by Bike; and Streets.mn has Minneapolis BRT news.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Streetsblog Joins Campaign for Public Financing of Non-Profit Media

New York provides tax credits to for-profit newsrooms. Now, non-profit digital outlets, public broadcasters and public access channels are seeking equal treatment. Doing so would strengthen our democracy.

December 26, 2025

Opinion: Why Urbanists Should Support Plant-Forward Policies 

Your plate is political, just like your choice to pedal instead of drive. And often, transportation and food politics have powerful intersections.

December 26, 2025

Thursday’s Headlines: Merry Christmas Edition

We're off today, and we wish you a very Merry Christmas!

December 25, 2025

Don’t Believe the Hype: NJ Turnpike Widening Still Happening

Gov. Murphy's late revision will just move the problem around, advocates say.

December 24, 2025

Opinion: Can AI Help Stop Car Crashes Before They Happen?

Proactive safety planning can save more lives than waiting until after crashes kill. But what's the proper role of technology in identifying future hot spots?

December 24, 2025

Wednesday’s Headlines Have a Clean Background

Uber isn't doing everything it can to keep violent felons out of the driver's seat, according to the New York Times.

December 24, 2025
See all posts