Access to the Region's Core

Access to the Region's Core
Trans-Hudson Express ARC Tunnel[1]
Location Hudson Palisades/Hudson River
Coordinates 40°45′17″N 74°01′00″W / 40.75479°N 74.01677°W / 40.75479; -74.01677Coordinates: 40°45′17″N 74°01′00″W / 40.75479°N 74.01677°W / 40.75479; -74.01677
Status Canceled as of October 2010
System New Jersey Transit
Start North Bergen, New Jersey
End New York City
Work begun June 2009
Operator New Jersey Transit
Traffic Train
Character Passenger
No. of tracks 2 single-track tubes
Gauge 1,435 mm (4 ft 8 12 in) Standard gauge
Electrified 12 kV overhead catenary
Lowest elevation 100 ft (30 m) below river level[2]
Tunnel clearance 24.5 ft (7.5 m)
Grade 0.3 – 0.8%

Access to the Region's Core (ARC) was a commuter rail project to increase passenger service capacity on New Jersey Transit (NJT) from Secaucus Junction in New Jersey to Manhattan in New York City. New infrastructure would have included new trackage, a new rail yard, and a tunnel under the Hudson River. A new station adjacent to New York Penn Station was to be constructed as running more trains into the current station was deemed unfeasible. An estimated budget for the project was $8.7 billion. Construction began in mid-2009 and the project was slated for completion in 2018, but it was cancelled in October 2010 by Governor of New Jersey Chris Christie, citing the possibility of cost overruns and the state's lack of funds.[3] $600 million had been spent on the project.[4]

The project was initiated after studies conducted in the 1990s determined that new rail tunnels under the Hudson River were the best approach address transportation needs for the New York metropolitan area. At times called the Trans Hudson Express Tunnel (THE Tunnel) or the Mass Transit Tunnel, it eventually became known by the name of a Major Investment Study, and received endorsements from both New Jersey and New York governors.[5] It was colloquially dubbed the tunnel to Macy's basement,[6] in reference to its terminus under 34th Street (Manhattan).

After its cancellation, the federal government demanded repayment of funding received by NJT for the project. The Christie administration engaged a law firm to present its arguments for non-payment which were subsequently rejected by the Federal Transit Administration. An agreement was eventually reached in which part of the funds would be returned while other monies would be used on transit-related projects.

Soon after work was halted there was speculation that the previously discussed idea of New York Transit Authority's 7 Subway Extension continuing into New Jersey would be revived, and in February 2011 the New York City Economic Development Corporation budgeted funds for a feasibilty study. Also in February 2011, Amtrak announced its intention to build a right of way and tunnel called the Gateway Project from Newark Penn Station to New York Penn Station, passing through Secaucus Junction, which would allow for usage by some New Jersey Transit trains.[7][8]




The project would have more than doubled the number of trains from New Jersey to Midtown Manhattan, providing direct, one-seat service from most of New Jersey Transit's rail lines, as well as more frequent service to in-state destinations.[9] The improvement would have included the construction of two new rail tunnels under the Hudson River as a supplement to the North River Tunnels, which operate at 100% capacity. The new tunnels would have connected to a six-track, state-of-the-art expansion of Penn Station under 34th Street with pedestrian connections to the existing station and New York City Transit's Eighth, Seventh, Sixth Avenue, and Broadway subway lines. Also planned were a new rail loop near the Frank R. Lautenberg Secaucus Junction Station allowing Main Line/Bergen County Line and Pascack Valley Line trains direct service to Midtown, and a new mid-day rail storage yard in the Kearny Meadows.[10][11] While the terminal station would have dead-ended trains, there was hope that it would one day be extended eastward depending on future funding.[9]

Cost and funding

Circle frame.svg

2009 Federal Transit Administration projections for the cost of the ARC tunnel. Later increases in projected costs, which would have to be assumed by the State of New Jersey, led Governor Chris Christie to cancel the project.

  New Starts — $3.0B (34.48%)
  Port Authority — $3.0B (34.47%)
  CMAQ & FHWA — $1.32B (15.18%)
  NJ Turnpike — $1.25B (14.37%)
  ARRA — $0.13B (1.50%)

The Federal Transit Administration (FTA) projected the cost for ARC as $8.7 billion in their 2009 Annual Report on Funding Recommendations for the New Starts Program,[12] which identified the funding for the project as follows.

Projections rose to close to $11 billion by the time of the cancellation of New Jersey's funding of the project[13] It is estimated that $610 million has been spent on the project. Before being terminated, the Port Authority has purchased, or otherwise acquired rights or leased land on Manhattan's West side. About $250 million was spent on studies and design.[14][4] Condemnation procedures initiated by the state for properties along the route in Hudson County were left pending at various stages after the cancellation.[15]

In September 2011, the Turnpike Authority voted to spend the funds committed to the project on roads within the state.[16]

Project history


In 1995, the ARC project began with the initiation of the Access to the Region's Core Major Investment Study (MIS) in which an initial list of 137 alternatives was identified, including bus, light rail, subway, Port Authority Trans-Hudson (PATH) rail, commuter rail, ferry, new technologies, and auto. This Major Investment Study was completed in 2003, and recommended two alternatives for advancement into a Draft Environmental Impact Statement. Alternative P would create new tracks and platforms under the existing Penn Station. Alternative S would create a new rail link to existing Penn Station as well as new East River Tunnels to expanded rail storage facilities at Sunnyside Yard. Alternative G would have provided a link to Grand Central Terminal, but that alternative was not recommended for further advancement.[17]

The environmental review stage lasted from 2003 to 2009. In June 2003, NJ Transit Board of Directors awarded a $4.9 million contract to Transit Link, a joint venture of Parsons Brinckerhoff and Systra Engineering, to produce a Draft Environmental Impact Statement (DEIS) for the project.[18]

In the very early stages of the project, there were plans for track connections from the new tunnels to existing Penn Station, the Penn Station Connector, which would have provided NJ Transit and Amtrak with the operational flexibility to use either the existing rail tunnels or the new ARC tunnels. In order to achieve a less than two percent grade from the low point in the tunnel under the river to Penn Station, the Penn Station Connector would have to diverge from the new ARC tunnels somewhere under the Hudson River. This would have required approval by the United States Environmental Protection Agency and the United States Coast Guard to allow construction of a very large, expensive coffer dam mid-river. Regulatory approvals seemed unlikely; construction of the coffer dam would have disrupted the contaminated river bottom which was previously declared a Superfund site [19] and would have obstructed busy river shipping channels. In addition to Hudson River impacts, the Penn Station Connector would have required excavation of a wide trench across Manhattan's West Side. Known as cut and cover tunneling construction, this wide trench would have displaced many businesses and residents and required unlikely support from the Hudson River Park Trust, Community Boards, and other stakeholder organizations.[20]

After the initial engineering and expert peer review in 2006 and 2007, NJ Transit determined that moving the station deeper and using modern tunnel boring techniques was the only way to avoid environmental, community, and engineering concerns. The agency opted to construct a underground terminal, which later became a source of controversy.

Design and construction management contracts were awarded respectively to THE Partnership, a joint venture of Parsons Brinckerhoff, STV, and DMJM Harris/AECOM,[21] and CM Consortium, a joint venture of Tishman, Parsons Corp. and ARUP, both in 2006.

In July 2006, the Federal Transit Administration (FTA) announced its decision to allow preliminary engineering to begin on the new trans-Hudson rail tunnel.[22] Supporters called the FTA's announcement a positive sign that the federal government eventually intended to commit funding to the project. The FTA approved the Draft Environmental Impact Statement (DEIS) for the project in January 2007,[23] and the Supplemental Draft Environmental Impact Statement (SDEIS) in March 2008. The SDEIS identified and evaluated the environmental impacts of a deeper profile tunnel with no track connections to existing Penn Station. These changes to the project scope were necessitated by a significant number of environmental, community, and engineering concerns regarding construction of the previous shallow tunnel and station. The Final Environmental Impact Statement (FEIS) was approved in October 2008.[24] In January 2009, the FTA issued the Record of Decision for the project and approved the start of final design.[25]

Beginning of construction

The first construction contract was awarded to construct a new railroad underpass at Tonnelle Avenue in North Bergen in June 2009, and the project's groundbreaking was held on June 8, 2009.[26] The Palisades Tunnels construction contract, the first major tunneling contract for the project was awarded on May 5, 2010.[27]

At the time of cancellation, construction was already underway on the Tonnelle Avenue Underpass and the Palisades Tunnels, one of three tunnel segments in the project,[27] the construction contract for the Manhattan Tunnels was pending award to Barnard-Judlau JV[28] and the Hudson River Tunnels, the third and final tunnel construction contract, was in the procurement phase.


Governor Christie endorsed the project in April 2010, but his support for the project was later called into question.[29] On September 10, 2010, with final design and construction on the first two contracts was already underway, NJ Transit's executive director, James Weinstein, ordered work on the tunnel to be suspended for 30 days for a 30-day risk review of the project's cost and schedule, because of concerns that the project would go $1 billion over budget and the State of New Jersey couldn't afford to pay.[30][31] News reports mentioned the possibility that Governor Christie's administration was considering scrapping the project to use the project's funding to replenish New Jersey's Transportation Trust Fund, however New Jersey's Transportation Commissioner James S. Simpson denied that the Administration ever contemplated such a possibility.[32][33]

On October 7, 2010, New Jersey governor Chris Christie announced that the ARC Tunnel project was officially cancelled, citing rising costs and concerns over New Jersey residents fronting the bill for the estimated $15 billion project.[3][34] The next day the governor agreed to a two-week reprieve, so that additional options for funding the tunnel could be developed.[35] Christie did briefly reconsider, reviewing options in discussions with US Secretary of Transportation Ray LaHood, but made a final decision to terminate the project on October 27, 2010.[36][37][38]

Funding repayment controversy

The cancellation forfeited federal funding for the project, and put into question the use of Port Authority money.[3] In November 2010 US Secretary of Transportation Ray LaHood agreed to an arrangement proposed by New Jersey's congressional delegation in which the state would return $271 million already received for the project and the DOT would in turn put $128 million into the state’s Congestion Mitigation Air Quality account to be used on future projects. The Christie administration did not accept the offer.[39]

The federal government then demanded total repayment by New Jersey of federal grants, as stipulated under federal law. The Christie administration has refused to repay and is involved in legal proceedings to avoid doing so.[40][41] The Federal Transit Administration requested that the state repay $271,101,291 by December 24, 2010.[42] New Jersey hired the Washington, D.C. law firm Patton Boggs to argue against the repayment.[43] As of April 2011, Patton Boggs had billed the state $803,000 in legal fees.[44] In a letter to New Jersey U.S. senators and congresssional representatives, Secretary LaHood wrote that the state was liable for the money, and that non-payment could result in the withholding of federal funding for other projects.[45][46]

On April 29, 2011, a Federal Transit Administration ruling rejected New Jersey's arguments on the repayment of the funds. The debt carries an interest rate of 1% per year,[47] and began to accrue on that date at a rate of approximately $225,000 per month.[48] Christie vowed that he would contest in the decision in court.[49]

In September 2011, FTA and NJT reached a deal whereby $95 million would be paid back.[50] The agreement waived $2.7 million in penalities and interest and stipulated that $128 million would be spent on DOT-approved transit-related projects.[51][52]


New York City Subway extension

Service is currently being extended from Times Square to 34th Street, partially parallel to the Hudson River

On November 16, 2010, The New York Times reported that New York City Mayor Michael Bloomberg's administration was working on a plan in lieu of the ARC tunnel, to bring the 7 train service of the New York City Subway to Secaucus Junction. This revived previous discussions about the possible extension which were not pursued given New Jerseyeans presumed preference for a "one seat ride" into Manhattan.[53][54][55][56] An extension of that service, from its current terminus at Times Square – 42nd Street to a station at 11th Avenue and 34th Street (Manhattan) began in 2007.[57] The planned new station is near the Javits Center, one block from the Hudson River.[13]

If built, the extension would take the New York City Subway outside the city's borders for the first time. It would offer a direct rail access from New Jersey to Times Square, Grand Central Terminal, and Queens as well as connections with most other subway routes.[13]

A subway extension would cost less than the ARC tunnel, as its eastern end would be the planned 7 train station at Eleventh Avenue, avoiding the expensive tunnel boring work east to Herald Square. Travel times into Manhattan could be longer than under the original ARC proposal, because riders would need to transfer to the subway from New Jersey Transit trains at Secaucus. On the other hand, riders would gain direct access to Grand Central Terminal on the east side of Manhattan. This was one of the original key goals of the ARC project that the final ARC proposal didn't satisfy. The 7 route might not have the same capacity as the ARC tunnel, as trains would not be arriving at a terminal station with multiple platforms. Bloomberg had not discussed the project with either New York Governor Andrew Cuomo or Christie, and it would not automatically receive the federal funds allotted to the ARC tunnel.[58] Christie stated that he would be open to the discussion.[59]

On February 2, 2011 the city's Economic Development Corporation voted to budget up to $250,000 for a feasibility study of a tunnel for the subway line extension awarded to Parsons Brinckerhoff, a major engineering firm that was working on the ARC tunnel.[60][61]

Gateway Project

In February 2011 Amtrak announced its intention to build a small segment of a high speed rail corridor called the Gateway Project to also be used by New Jersey Transit. While Amtrak acknowledged that the region represented a bottleneck in the national system, its timetable for beginning the project was advanced in part due to ARC's cancellation. The project is similar in scope, but passengers travelling from Bergen, Passaic, Rockland, and Orange counties will still require a transfer at Secaucus Junction. Rather than a deep cavern station, a new southern terminal annex, considered more integral to an expanded New York Penn Station complex, will be built. A track from the new tunnel will also connect to the existing Penn Station, allowing for use by Amtrak's Northeast Corridor through-service trains. The proposed project is expected to take ten years to complete and is estimated to cost $13.5 billion, though no funding was identified at the time of the plan's announcement.[7][8]

See also

Sources and notes

  1. ^ "ARC Access to the Region's Core". New Jersey Transit. Retrieved 2011-01-28. 
  2. ^ 200 ft (61 m) average depth in Palisades portion
  3. ^ a b c McGeehan, Patrick (October 7, 2010). "Christie Halts Train Tunnel, Citing Its Cost". The New York Times. Retrieved October 8, 2010. 
  4. ^ a b Pillets, Jeff (February 28, 2011), "State wants refund for $161.9M tunnel insurance", The Record,, retrieved 2011-03-14 
  5. ^ "Timeline of events in Hudson River tunnel project". The Star-Ledger (Newark). October 7, 2010. Retrieved 2011-02-15. 
  6. ^ Mulshine, Paul (October 27, 2010). "Christie kills the tunnel to Macy's basement". The Star-Ledger (Newark). Retrieved January 22, 2010. 
  7. ^ a b Frassinelli, Mike (February 6, 2011). "N.J. senators, Amtrak official to announce new commuter train tunnel project across the". The Star-Ledger (Newark). Retrieved 2011-02-07. 
  8. ^ a b "Gateway Project" (PDF). Amtrak. February 2011. Retrieved 2011-02-07. 
  9. ^ a b Sarles, Richard R. (February 6, 2009). "N.J./N.Y. rail tunnel will benefit commuters". Retrieved October 8, 2010. 
  10. ^ Belson, Ken (April 6, 2008). "Tunnel Milestone, and More to Come". The New York Times. Retrieved 2011-01-26. 
  11. ^ New Jersey Transit (October 2008). Newark, NJ. "Access to the Region's Core: Final Environmental Impact Study." Executive Summary.
  12. ^ Annual Report on Funding Recommendations, Fiscal Year 2011, New Starts, Small Starts, and Paul S. Sarbanes Transit in Parks Program, November 2009, 
  13. ^ a b c Bagli, Charles (November 16, 2010). "New York Studies Extending Subway Line to New Jersey". The New York Times. Retrieved 2010-11-16. 
  14. ^ McGeehan, Patrick (February 7, 2011). "With One Plan for a Hudson Tunnel Dead, Senators Offer Another Option". The New York Times. Retrieved 2011-02-09. 
  15. ^ Firschein, Merry (October 30, 2010). "Cases in limbo with tunnel demise". The Record (Bergen County). Retrieved 2011-07-21. 
  16. ^ Frasinelli, Mike (September 8, 2011), "N.J. Turnpike Authority to redirect $1.25B from scrapped ARC tunnel to local road, bridge projects", The Star-Ledger (Newark),, retrieved 2011-09-09 
  17. ^ "Access to the Region's Core Major Investment Study Summary Report 2003" (Press release). NJ Transit. 2003. 
  18. ^ "McGreevey announces major progress for "ARC" project". June 20, 2003. 
  19. ^ "The Hudson River Dredging Project". General Electric. Retrieved October 22, 2009. 
  20. ^ Vantuono, William (April 2010). "Reconquering Gotham". RailwayAge. Retrieved October 8, 2010. 
  21. ^ "Engineering Begins on Trans-Hudson Express (THE) Tunnel" (Press release). New Jersey Transit. August 1, 2006. Retrieved February 13, 2010. 
  22. ^ Smothers, Ronald (July 19, 2006). "New Hudson Rail Tunnel Is Nearing Federal Approval". The New York Times. Retrieved February 13, 2010. 
  23. ^ "FTA Approves Next Major Step for Tunnel Project" (Press release). New Jersey Transit. January 19, 2007. Retrieved February 13, 2010. 
  24. ^ "N.Y.-N.J. rail tunnel clears environmental hurdle" (Press release). The Associated Press. November 10, 2008. 
  25. ^ "Record of Decision Access to the Region's Core Project in Hudson County, NJ and New York City, NY" (Press release). New Jersey Transit. January 14, 2009. 
  26. ^ "New Jersey Breaks Ground on Nation's Largest Transit Project" (Press release). New Jersey Transit. June 8, 2009. Retrieved February 13, 2010. 
  27. ^ a b Skanska to Construct Rail Tunnel in New York for USD 52 M, Approximately SEK 380 M, May 18, 2010, 
  28. ^ Strong competition for first ARC contract, November 2009, 
  29. ^ Freemark, Yonah (September 17, 2010). "Political Will Disappearing, New Jersey’s ARC Project Could be On the Way Out". The Transport Politic. Retrieved October 8, 2010. 
  30. ^ Sherman, Ted (September 12, 2010). "N.J. halts new work on $8.7B N.Y.-N.J. tunnel project due to budget issues". The Star-Ledger (Newark). Retrieved September 20, 2010. 
  31. ^ Fleisher, Lisa; Sherman, Ted (September 14, 2010). "Gov. Christie says he ordered suspension of $8.7B trans-Hudson tunnel project". The Star-Ledger (Neark). Retrieved October 8, 2010. 
  32. ^ "NJ Official: Diverting Arc Tunnel Money Considered". September 20, 2010. 
  33. ^ Rouse, Karen (September 28, 2010). "N.J. transportation chief says no plan to kill rail tunnel". The Record. Retrieved October 8, 2010. 
  34. ^ WNYC Newsroom (October 7, 2010). "It's Official: ARC Tunnel Project is Dead". WNYC. Retrieved October 7, 2010. 
  35. ^ McGeehan, Patrick (October 8, 2010). "Christie to Review Options on Tunnel". The New York Times. Retrieved October 8, 2010. 
  36. ^ "Governor Chris Christie – “I’m executing my responsibility in the way that I believe is best for the people of the State of New Jersey and our long-term fiscal health.”" (Press release). New Jersey Office of the Governor. October 27, 2010. Retrieved January 20, 2010. 
  37. ^ Margolin, Josh; Frassinelli, Mike (October 27, 2010). "N.J. Gov. Christie to cancel Hudson River tunnel, blaming feds' refusal to increase funding". The Star-Ledger (Newark). Retrieved October 30, 2010. 
  38. ^ McGeehan, Patrick (October 27, 2010). "Christie Kills Train Tunnel, Again". The New York Times. Retrieved October 30, 2010. 
  39. ^ "U.S. relaxes demand on $271M ARC tunnel funds after N.J. Gov. Christie canceled project", The Star-Ledger (Newark), Thursday, December 16, 2010,, retrieved 2011-05-02 
  40. ^ Patton Boggs (January 25, 2011). "New Jersey Transit Corporation's Opposition to the Federal Transit Administration's November 24, 2010 Repaymnet Demand". Retrieved 2011-05-2011. 
  41. ^ Kabak, Benjamin (26 January 2011). "Mulling the 7, Christie disputes ARC payments". Second Avenue Sagas. Retrieved 7 April 2011. 
  42. ^ "N.J. is formally told to pay federal government $271M for canceling ARC tunnel". Associated Press. November 29, 2010. Retrieved 2006-12-20. 
  43. ^ Rouse, Karen (March 10, 2011), "Legal bill for ARC tunnel money fight tops $333,000", The Record,, retrieved 2011-03-14 
  44. ^ Associated Press (April 20, 2011). "N.J. legal tab to fight $271M federal bill for scrapped ARC tunnel reaches $800K". Retrieved 2011-04-30. "Invoices show the Washington, D.C.-based Patton Boggs law firm billed the state $469,715 for work performed in January alone. The Record newspaper reports that covers more than 700 hours of work performed by 11 attorneys. The newspaper says those costs are in addition to the $333,281 NJ Transit has already paid the law firm for work in December." 
  45. ^ Rizzo, Salvador (April 30, 2011), "Federal government demands N.J. re-pay $271M for commuter tunnel Gov. Christie canceled", The Star-Ledger (Newark),, retrieved 2011-04-30 
  46. ^ La Hood, Ray (April 29, 2011). "Secretary of Transportation letter to Senator Lautenberg". Retrieved 2011-04-30. 
  47. ^ McGeehan, Patrick (April 30, 2011). "New Jersey Must Return $271 Million Spent on Hudson Tunnel, U.S. Insists". The New York Times: p. A16. Retrieved 2011-04-30. 
  48. ^ Rizzo, Salvatore (May 29, 2011). "Gov. Christie's battle over scrapped ARC tunnel costing N.J. $225K a month in interest alone". The Star-Ledger (Newark). Retrieved 2011-05-29. 
  49. ^ Rizzo, Salvatore (May 3, 2011). "Christie vows to fight Obama administration in court over $271M for scrapped ARC tunnel". The Star-Ledger (Newark). Retrieved 2011-07-21. 
  50. ^ McGeehan, Patrick (September 30, 2011). "N.J. to Repay U.S. $95 Million Over Hudson Tunnels". The New York Times. Retrieved 2011-10-03. 
  51. ^ Rouse, Karen (September 30, 2011). "Feds reach deal with NJ Transit to reduce ARC tunnel debt to $95M". The Record. Retrieved 2011-09-30. 
  52. ^ Frassinelli, Mike (September 30, 2011). "N.J., feds settle bill for canceled ARC tunnel for $95M". The Star-Ledger (Newark). Retrieved 2011-09-30. 
  53. ^ Barbara, Philip (November 28, 2010), "Opinion: ARC derailed: Weighing the alternatives", The Record,, retrieved 2011-03-14 
  54. ^ Cassidy, Jack (April 4, 2005). "Bloomberg's Game". The New Yorker. Retrieved 2011-02-14. 
  55. ^ Frassinelli, Mike (November 18, 2010). "Extending No. 7 subway to Secaucus could provide alternative to killed ARC tunnel". The Star-Ledger (Newark). Retrieved 2010-11-17. 
  56. ^ McGeeham, Patrick (November 17, 2010). "Extend a Subway Line Under the Hudson? For Two Men, It’s Hardly a New Idea". The New York Times. Retrieved 2010-11-17. 
  57. ^ "Mayor Bloomberg and Governor Spitzer Announce Start of Construction on #7 Subway Extension" (Press release). New York City Mayor's Office. December 3, 2007. Retrieved 2010-02-28. 
  58. ^ Bernstein, Andrea (November 16, 2010). "Mayor Bloomberg Explores Extending Subway to New Jerse". WNYC. 
  59. ^ McGeehan, Patrick (November 23, 2010). "Subway Extension Draws Support, if Not Financing". The New York Times. Retrieved 2010-01-01. 
  60. ^ Bernstein, Andrea (February 4, 2011). "City finally puts $$$ behind subway to New Jersey". Transportation Nation. Retrieved 2011-02-07. 
  61. ^ New York City Economic Development Commission (February 2, 2011). "No. 7 Line Extension to Secaucus Consultant Services" (PDF). Retrieved 2011-02-07. 

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