ConDig (01-Jun-26) A joint venture led by Skanska, alongside Traylor Bros., Inc. and Walsh Construction, has been awarded a $1 billion contract to advance the next phase of New York City’s long-awaited Second Avenue Subway expansion.
The contract was awarded by the Metropolitan Transportation Authority (MTA) as part of Phase II of the Second Avenue Subway Program. Skanska’s share of the contract is valued at about $498 million.
The project represents another major milestone in one of the most significant transit infrastructure initiatives underway in the United States and will continue the northward extension of subway service through Manhattan’s East Side.
New station infrastructure planned
The scope of work includes the design and construction of station structural shells between East 105th Street and East 110th Street to accommodate the future 106th Street Station.
The joint venture will also construct structural connections to existing tunnels, undertake excavation and earthworks, and install roadway decking to maintain traffic flow throughout construction.
Additional work includes building above- and below-grade structures for station entrances, along with extensive utility relocation, support, and reconstruction activities.
Construction is scheduled to begin in May 2026, with completion expected during the third quarter of 2030.
Continuing one of New York’s largest transit projects
The award builds on the success of Phase I of the Second Avenue Subway, which opened in 2017 and extended service from 63rd Street to 96th Street. The next phase will continue the line north to 125th Street, improving transit access for communities in East Harlem while increasing capacity across New York City’s broader transportation network.
For decades, the Second Avenue Subway has been viewed as one of the most important transit projects in the United States, aimed at reducing congestion on the overcrowded Lexington Avenue line and supporting long-term growth across Manhattan.
Major transit investments fuel infrastructure market
The contract highlights the continued strength of the transportation infrastructure sector, which remains one of the most active areas of construction spending in the United States.
Large-scale transit projects have benefited from a combination of federal infrastructure funding, state investment programs, and increasing demand for resilient urban transportation systems. While some private construction sectors continue to face pressure from higher financing costs and economic uncertainty, transportation infrastructure projects are providing contractors with long-term backlog visibility and stable revenue opportunities.
For Skanska, the award further strengthens its position in the US transportation market, where the company has been involved in several high-profile rail, transit, highway, and aviation projects.
The project also underscores the growing complexity of urban infrastructure construction, requiring extensive utility coordination, traffic management, and phased delivery strategies to minimize disruption in densely populated environments.
As work progresses toward a 2030 completion date, Phase II of the Second Avenue Subway will represent another significant step in expanding New York City’s transit network while generating thousands of construction jobs and billions of dollars in economic activity.