Hudson rail tunnel project gets key labor approval

Step comes despite contractor's claim of exclusion

By: Colleen Wilson
NorthJersey.com
USA Today Network - New Jersey

NEWARK - The agency overseeing the massive construction project to build a new rail tunnel beneath the Hudson River approved a project labor agreement at its August 20 [2025] meeting - despite concerns raised by a construction company about the labor deal.
..... The agreement at issuer is for work on a portion of the Gateway tunnel project called the New Jersey's Surface Alignment to construct tracks, catenary and other facilities between the future opening of the tunnel in North Bergen and County Road in Secacus. The Gateway Development Commission is expected to award the surface alignment bid in early 2026.
..... this is one of 10 projects within the $16 billion Gateway tunnel program, which includes construction of a new two-track tube between New York Penn Station and North Bergen, followed by rehabilitating the century-old rail tunnel that severs NJ Transit and Amtrak riders on the Northeast Corridor.
..... The new tunnel is expected to reduce delays and improve service for NJ Transit and Amtrak riders.
..... A project labor agreement, or PLA, sets wage rates, work rules, conflict resolutions strategies and other terms before a project begins, a step that is especially working with multiple trades that have different collective bargaining agreements.
..... Last month, [07/2025] the gateway Development Commission authorized Thomas Prendergast, the bistate agency's CEO, to negotiate this PLA, but the board unexpectedly went into executive session before voting on the item. When they returned, the authorization was approved, but the commission's co-chair, Alicia Glen, verbally amended the item to require the board to approve the PLA once it was negotiated.
..... Earlier in that July, [2025] meeting, the commission board heard from multiple representatives of George Harms Construction company, who chided the agency for "excluding" them from bidding on the project because PLA does not include the Unites Steelworkers union.
..... Harms has a unique arrangement that uses 100% United Steelworkers labor for its projects, a partnership that dates to 1970.
....."Harms cannot lawfully submit a bid under the PLA that excludes United Steelworkers,"' or USW, said Rob Harms, CEO of the Farmingdale-based constitution company.
..... "Harms is not seeking special treatment; we are simply asking for a fair opportunity to compete," said Harms, who added that the company is one of four short-listed firms qualified to bid on the project. "the USW is fully qualified and ready to perform the work."
..... The Gateway Development Commission's PLA for this project is an agreement with the Hudson County building and Construction Trades Council, which covers 21 labor unions, including the local chapter of operating engineers, sheet metal workers, plumbers, ironworker and carpenters.
..... Ray Heineman, attorney for the Hudson County building and Construction Trades Council, said Harms' company is not excluded from participating.
..... "The terms of the PLA apply to all contractors, but it doesn't exclude contractors - it's open to all contractors,"Heineman said. "George Harms is welcome to bid on a project as are any other contractors regardless of signatory status," Heineman said, "The PLA also does not exclude the contractors' own workforce. this PLA allows 12% of the core workforce of a contractor to be employed under the terms."
..... Steven Gardner, director of the New Jersey Laborers Employers Cooperation and Education trust, said PLAs have been sued on public and private more than a century dating back to the Hoover Dam and including more recent projects, such as the Scudder falls Bridge that crosses the Delaware River. The Gateway Development Commission has used PLAs for all its previous contracts.
..... "There is no better tool to getting a project accomplished on time, on budget and with the best contractors and the best workforce than with a PLA,' Gardner said.
..... "PLAs have been an effective tool - maybe the most effective tool - and they're most effective on the most complex projects anywhere," Gardner said. "It would be hard for me to imagine a project more suited for a PLA than the project before you today."

Engineering firm hired

..... The Gateway commission also approved the hiring of its engineer of record, a joint venture of WSP. AECOM and STV, known as Gateway Trans Hudson Partnership engineering.
..... The joint venture was awarded a $369.2 million contract to provide engineering services on the remainder of the $16 billion construct program through 2035, with three one-year options to expend the contract through 2038.
..... Asked why the agency proceeded with the contract after receive only eon bid, Pat McCoy, the commission's chief financial officer, said, "This entity has been working on the Hudson Tunnel Project under contract with Amtrak." In short, this transferred the purview of overseeing the joint venture engineering group from Amtrak to the Gateway commission.
..... Asked why this didn't happen a couple of years ago, McCoy said, "This is a significant work stream that we're taking about and we quite frankly needed the time to put the solicitation together."
..... He added: "To initiate a [request for proposals] of this magnitude, for this magnitude of services, for this time, we're talking about 10 years ... there's a lot to go into it."

Boring machine Nealy built

..... The manufacturing of the tunnel boring machines that will do the heavy-duty drilling and excavating for the new tunnel through the Palisades and under the Hudson River into the historic Manhattan bulkhead are nearly complete.
..... The first boring machine is 85% manufactured and the second is at 73%. Both tunnel boring machines are being manufactured in Germany and are expected to be completed in November. [2025] They will be shipped to North Bergen, where they will be assembled at the Tonnelle Avenue site of the new tunnel entrance.
..... Tunneling is expected to begin in the sumer of 2026.
..... "These machines are massive and extremely complicated,: Prendergast said.
..... The machine will be 28 feet in diameter, weighing 1,600 tons each, and can dig 30 feet per day.

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