A joint venture led by Skanska has secured a $1.29 billion contract to deliver a key section of the Hudson Tunnel Project in New York, marking another major step forward for one of the most significant rail upgrades in the US Northeast.

The contract, awarded by the Gateway Development Commission, covers Package 1C — the Hudson River Tunnel section. Skanska is partnering with Traylor Bros., Inc. and Walsh Construction on the project, with its individual share valued at $363 million, which will be recorded in its second-quarter 2026 order intake.

The scope of work includes the construction of two new passenger rail tunnel tubes beneath the Hudson River. Each tunnel will extend approximately 2,200 meters (7,250 feet), running from an access shaft in Weehawken, New Jersey, to another on Manhattan’s west side. The project will involve boring two parallel single-track tunnels, installing tunnel linings and floors, and constructing nine cross passages to connect the tubes.

Additional works include ground stabilization activities near the Hudson-Bergen Light Rail system and the permanent underpinning of the Willow Avenue Bridge — both critical to maintaining existing infrastructure during construction.

Work on the project is expected to begin in the coming months, pending notice to proceed.

The Hudson Tunnel Project is a central component of broader efforts to modernize rail connectivity between New Jersey and New York, easing congestion and improving reliability along one of the busiest passenger rail corridors in the United States.