The Regional Plan Association says that the Hudson Tunnel project will generate $19.6 billion in economic activity and approximately 95,000 jobs – 20,000 more than what was initially projected.
By John Heinis/Hudson County View
The report utilizes research done on behalf of the Gateway Development Commission (GDC) that found the three early works components of the Hudson Tunnel project currently underway, which represent roughly $1 billion in awarded contracts, will yield 7,500 jobs and generate $625 million of labor income.
The new estimates of the project’s overall impact were obtained by extrapolating this analysis over the $16 billion in total construction spending for the Hudson Tunnel project.
“For every individual dollar invested in public transportation, our economy sees a return of $4 in additional economic output, resulting in more jobs and higher incomes. The tunnel project will realize these long-term benefits by shortening travel times, increasing worker productivity, expanding the number of jobs that are accessible to residents in the region and the size of the workforce that employers can draw from,” the RPA wrote.
” … Tonnelle Avenue Bridge and Utility Relocation project will open up construction access in North Bergen, New Jersey, enabling the new tunnel portal to connect to the New Jersey Palisades, as well as make way for the tunnel boring machines to dig through the Palisades portion of the route.”
The other two components of the project they took are look at are both based out of Manhattan: Hudson Yards Concrete Casing Section 3 and the Hudson River Ground Stabilization.
Furthermore, the total cost of the project is broken down, with six sources of revenue identified.
The Federal Transit Administration’s expected grant funding is earmarked at $6.88 billion, the Federal Railroad Administration’s federal-state partnership grant is good for $3.8 billion, the Port Authority will cover $2.678 billion, with Amtrak chipping in $1.016 billion.
The final funding sources identified at the State of New York and the State of New Jersey, set to invest $1.335 billion and $0.0308 billion, with the discrepancy existing since the Portal North Bridge reconstruction in Kearny comes with a $772.4 million price tag.
“The Hudson Tunnel project is the most pressing infrastructure project of our time, and it will bring enormous benefits to our region and nation. This new report emphasizes the broad economic benefits of the project, which are already being generated by $1 billion in early work contracts,” RPA President and CEO Tom Wright said in a statement.
“RPA’s research has found that the economic ties of the region are strong, and that a reliable, 21st-century transportation system is essential to maintaining this connection. The Hudson Tunnel Project will set the stage for long-term economic growth by connecting more residents to jobs in the region and expanding the size of the workforce that employers can draw from.”
The GDC recently announced that it has submitted all documents required by the FTA to reach a Full-Funding Grant Agreement (FFGA) for $6.88 billion in Capital Investment Grants (CIG) Program funding for the HTP, clearing the way for the HTP to secure all $16 billion needed for the project’s full delivery.
“The $1 billion in construction contracts we’ve awarded so far are already creating thousands of jobs and pumping millions of dollars into the economy, and that’s only the beginning,” added GDC CEO Kris Kolluri.
“Now this report shows the overall impact of the project will be even greater than we thought, and that the Hudson Tunnel Project is a big win for the region and the nation.”
