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$16B Hudson River Tunnel Program Seeks Project Delivery Partner

Hudson River Tunnel Route Map

GDC (the Gateway Development Commission) has revealed that it has plans to deliver an RFQ (Request for Qualifications) for a Project Delivery Partner (PDP) on the US$16bn Hudson Tunnel Project. The project is a new, two-track Hudson River rail tunnel built between the Bergen Palisades in New Jersey to Manhattan. As part of this request, GDC will pursue input from the private industry on the specific PDP structure most suitable for the project. As reported, the RFQ will be issued in the upcoming days.

Engagement with a PDP will dramatically increase GDC’s technical, financial, and legal capacities to manage and deliver the Hudson Tunnel Project containing improvements to launch planning, programming, design management and construction management capabilities. Moreover, probable performance stimuli in the partnership will raise discipline in delivering the project efficiently.

The New Jersey Commissioner and GDC Co-Chair, Balpreet Grewal-Virk stated: “This innovative approach to delivering the Hudson Tunnel Project is the kind of outside-the-box thinking we must bring on this critical project,”

“Private industry has told us they are ready to partner and help make sure the Gateway Hudson Tunnel Project is built. This moves us another big step in that direction,” added Balpreet.

Alicia Glen, the New York Commissioner and GDC Co-Chair pointed put: “Engaging with the private sector to leverage the best and brightest ideas in the industry is central to the successful delivery of the Gateway Hudson Tunnel Project.”

She claimed: “We will continue to look for smart opportunities to deliver the project on time and on budget.”

Tony Coscia, the Amtrak Chairman and GDC Vice Chair explained: “This procurement approach for the Hudson Tunnel Project preserves flexibility and allows for opportunities to introduce innovative thinking into the project,”

“With partnerships that bring cost and schedule discipline, we’re putting GDC in the best possible position to deliver on our commitments.”

The GDC Chief Executive Officer, Kris Kolluri expressed: “Building the most urgent infrastructure project in the nation takes a strong partnership with the private sector that includes every area from international and nationwide companies to local and DBE firms.”

He also added: “Adding the expertise, innovation and scale of a project delivery partner will be an enormous benefit as we work to make the Gateway Hudson Tunnel a model of effective and responsible project management.”

Subject to the PDP model, the private partner is embedded with the asset owner and shares a joint focus on outputs and motivations for achieving milestones on time. This model facilitates accountability and enables asset owners to appoint performance metrics in areas like quality control, target cost, safety, completion dates and others. The PDP model assures that GDC will maintain management of all elements of the project.

The GDC’s Project Delivery Partner will be among the first delivery partner model contracts in the US, following international success. Among the most effective uses was the development of the London Olympic Games, where the work was given beforehand of schedule and within budget.

Currently, the mentioned model is deployed on some of the greatest infrastructure construction projects in the world, like HS2 in the UK and Sydney Metro in Australia.

As part of the meeting, the GDC Board also authorized a Capital and Operating Budget for the Commission of 2023 and a resolution to progress several organizational policies.

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