The Hudson Tunnel Project (HTP) has reached a major milestone with the start of construction on the Manhattan Tunnel Project. Valued at $1.18 billion and awarded on February to the Frontier-Kemper-Tutor-Perini joint venture, this segment is considered one of the most challenging in the $16 billion program, delivering the critical New York portal for a new rail crossing under the Hudson River.
February 2025 – Contract Award and Greenlight
On February 3, 2025, the Gateway Development Commission (GDC) Board of Commissioners awarded the Manhattan Tunnel Project contract following competitive selection. On February 3, 2025, the Board also provided approval for the notice to proceed, thus allowing work to advance, and signed a Memorandum of Understanding related to the Project Labor Agreement with labor unions in 2024.
An estimate presented to the Board quantified that the Manhattan Tunnel Project would generate approximately 7,200 jobs in the construction period.
Spring 2025 – Construction Officially Underway
By spring 2025, active work began on the West Side of Manhattan. Initial work comprised:
Clearing the debris and relocating utilities along the Hudson River Bulkhead.
Excavation on the 12th Avenue site that will serve as both the construction entrance and eventually a permanent ventilation building.
Pre-casing activity for preparation to protect adjacent infrastructure, including sewer pipes, during tunnel digging.
This stage will deliver approximately 700 feet of double 30-foot diameter tunnels from the Bulkhead to the Hudson Yards Concrete Casing east of 12th Avenue.
Summer 2025 – Coordination With Other HTP Segments
Through July 2025, the Manhattan Tunnel Project was part of five active HTP packages that included:
The Palisades Tunnel Project, North Bergen, New Jersey.
Hudson Yards Concrete Casing – Section 3 (HYCC-3).
The Hudson River Ground Stabilization Project (HRGS).
The Tonnelle Avenue Bridge and Utility Relocation Project.
Manhattan and Palisades Tunnel coordination is specifically critical, as the Manhattan side will be the receiving end for the TBMs that will start from New Jersey.
August 2025 – Tunnel Boring Machine Progress
On 20 August 2025, GDC reported that the two massive TBMs being built for the Palisades Tunnel Project were nearing completion. Prior to this, one of the machines had been 85 percent complete and the other 73 percent complete. The two are set to finish manufacturing in November 2025, tested afterwards, and sent out to North Bergen for assembly.
One set of two tunnel boring machines will dig the section of the new tunnel tubes from Tonnelle Avenue in North Bergen, NJ to the Hudson County Shaft. A second set of machines will build the section of the tunnel tubes under the Hudson River.
Estimated Timeline
2025–2026: Casing and excavation construction at 12th Avenue; delivery and installation of TBM in New Jersey.
2026: TBMs begin eastbound Hudson River tunneling.
2029: Substantial completion of Manhattan Tunnel Project.
2035: Opening of new Hudson River Tunnel.
2038: Completion of the rehabilitation of the existing North River Tunnel.
Outlook
The Manhattan Tunnel Project is on schedule as of August 2025. Successfully delivered, this component is essential to the overall Hudson Tunnel Project, enabling safe landing in Manhattan of the New Jersey TBMs and enabling integration with Hudson Yards infrastructure of the future two-track rail tunnel. The Gateway Program, which includes the Hudson Tunnel Project, is part of a growing wave of rail infrastructure modernization efforts across the United States aimed at expanding capacity, replacing aging assets, and improving resilience.
The project is a technological marvel and a staggering economic stimulus, creating thousands of jobs and having a certain role to play in making the Northeast Corridor railroad infrastructure more resilient.
Read also: Gateway Tunnel Project: A major infrastructure undertaking in NYC and NJ
Read also: Hudson River rail tunnel project in New York, USA
Manhattan Tunnel Project – Factsheet
Overview of the Project
Project Name: Manhattan Tunnel Project
Part of: Hudson Tunnel Project (HTP)
Authority in Charge: Gateway Development Commission (GDC)
Contractor: Frontier-Kemper-Tutor-Perini JV
Date of Approval: February 3
Key Facts
Project Phase: Active Construction (as of August 2025)
Expected Completion: 2029
Jobs to be Created: About 7,200 new jobs will be created as estimated by EY.
Technical Specifications
Tunnel Length: Approximately 700 feet of twin tunnels
Tunnel Diameter: 30 feet per tunnel
Route: From Hudson River Bulkhead to Hudson Yards Concrete Casing east of 12th Avenue
Integration Point: Receiving location for Tunnel Boring Machines from New Jersey
August 2025 – TBM Progress Update
August 20, 2025: Tunnel Boring Machine status confirmed
TBM1: 85% complete
TBM 2: 73% complete
Both machines scheduled for completion by November 2025
Read also: $16 Billion Gateway Tunnel Project Under Hudson River Gets Final Green Light
