NJ Transit re-examines ARC

$8.7 billion project frozen; North Hudson construction continues for now

One of the largest and most expensive infrastructure projects in United States history, known as Access to the Regions Core (ARC), has been partially halted after NJ Transit Executive Director James Weinstein imposed a 30-day suspension at the direction of Gov. Christopher Christie, who is concerned the project’s costs might increase beyond original estimates.
Last June, federal, state, and local officials praised the fact that years of hard work, planning, and securing $8.7 billion in funds had finally allowed the Trans-Hudson Express Tunnel to come to fruition.
“NJ Transit and the Federal Transit Administration (FTA) have been working for five months on an intensive review of the ARC Trans-Hudson Express Tunnel as part of finalizing the grant for the federal government’s financial contribution to ARC,” said Weinstein. “The review showed that ARC’s budget properly accounted for labor, materials, inflation, and other costs.”

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“If it’s just a regrouping to get finances in order, then that would be fine.” – Nicholas Sacco
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However, Weinstein said that the review caused a second look at the ARC project because other major tunneling projects in the area have become more expensive due to delays and rising construction costs. Due to this, the FTA may require additional contingency funds from the state that could impact the overall estimate, which got the governor’s attention.
He said that as the executive director, and under the direction of Gov. Christopher Christie, who “has made it clear” that construction needs to stay on time and on budget, he ordered the 30-day review so that NJ Transit could determine the true cost of the project. Christie is on the board of NJ Transit by virtue of being governor.
“NJ Transit strives to be a model for delivering projects responsibly,” said Weinstein. “I would not be a responsible steward if I ignored a possibility that the ARC project budget could change.”
According to published reports, Christie took credit for the freeze at a press briefing on Tuesday.

Urge project forward

Several groups have urged Christie to expedite the review so work can resume quickly.
The Construction Trades Council President William Mullen said that the delay was worrisome due to the current high unemployment rates of New Jersey.
“New Jersey must not be held captive or shortchanged because other transportation projects in the region are over budget or behind schedule,” said Mullen. “It imperils the billions of dollars in federal aid already committed for this project, as well as the $50 billion in annual income that New Jersey workers earn in New York.
The group Environment New Jersey issued a statement detailed how construction of the tunnel would lesson greenhouse gases and get more commuters out of their cars and into trains.

North Hudson construction continues

While the freeze stopped all new construction, real estate acquisitions, and the awarding of additional contract bids, work on the underpass in North Bergen and a tunnel segment under the Palisades has been allowed to continue.
According to Paul Wyckoff, the senior director of public affairs for the Trans-Hudson Express Tunnel, the North Bergen underpass that goes beneath Tonnelle Avenue, is about one-third complete. He said that so far there were some new beams up for a new section of roadway.
Wykoff said the Palisades tunnel section is in the initial stages of design and that work on both the North Bergen and Hoboken side of the tunnel is “…just about to get started,” but that construction has not yet begun.
He said the actual tunnel boring will not begin until next summer when a custom-built boring machine is completed. For the time being, design and engineering was most of the work currently underway.
“They are still working in North Bergen [and] in the Palisades, so the work hasn’t stopped, so I’m not overly concerned at this point because work is continuing,” said North Bergen Mayor Nicholas Sacco, who is also the Chairperson to the New Jersey Senate Transportation Committee. “I’m just hoping that there is no plan [of] ending this project – that is my only concern. If it’s just a regrouping to get finances in order, then that would be fine. That makes a lot of sense. I’m just hoping there is no double meaning to what is going on.”
Sacco said that he had recently spoken to Commissioner of Transportation James Simpson, who gave him the impression that it was just a “minor delay.”
“I’m taking everyone at their face value until I hear or see differently,” said Sacco.

What is at stake?

To date, the FTA has pledged $3 billion and the Port Authority has promised an additional $3 billion, leaving New Jersey with a $2.7 billion bill. ARC is slated to be complete in 2018, and according to NJ Transit, by 2030 it would more than double the number of trains traveling between New Jersey and New York from its current 23 per hour to 48.
Around 6,000 construction jobs and 44,000 permanent jobs were supposed to be created from the project, but NJ Transit refused to comment on how many jobs have resulted since work began or how many are at risk by the 30-day freeze.
Tricia Tirella may be reached at TriciaT@hudsonreporter.com.

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