Port Authority Of NY / NJ To Start Building $8.7 Billion Second Rail Tunnel In Hudson River Next Year

November 8, 2008 10:17 a.m. EST

Trenton, NJ (AHN) - The Port Authority of New York and New Jersey will start the construction of a second rail tunnel under the Hudson River next year at a price tag of $8.7 billion, $1.1 billion more than its original budgeted cost due to inflation and additional contingency funding.

The new tunnel is seen to help the economy especially in creating jobs. According to the Asbury Park Press that for every $1 billion spent by the Port Authority for major projects creates 47,000 new jobs and $6 billion in additional economic output, citing port authority chairman Anthony R. Coscia.

The tunnel project will take about a decade to finish and will allow commuters to use NJ Transit trains to get to Manhattan, easing traffic and reducing carbon emissions.

The bi-state port authority, the State of New Jersey and the federal government will fund the tunnel project. New Jersey will provide 20 percent of the funding, while the port authority and the federal government will shoulder 40 percent each.

The State of New York's share is already covered by the port authority's share, while New Jersey will get its funding from toll increases in the state's turnpikes and Garden State Parkway next month.

The port authority has requested the federal government to fast track approval of the tunnel project including other projects worth $3 billion to stimulate the region's economy.

The tunnel funding is exclusive of new trains estimated to worth $400 million once the tunnel starts operating.