Amtrak OIG Hudson Tunnel Project review highlights key risks

Amtrak OIG Hudson Tunnel Project oversight could be strengthened by sharper communication—both with partners and across Amtrak—and by more consistent project document management, the Amtrak Office of Inspector General said in an assessment issued Dec. 17. The $16 billion program has also been covered by Railway Supply.

The assessment also credits Amtrak with improvement on near-term work. It cites steps such as acquiring real estate, staffing its project team, and beginning planning for testing and commissioning of the new tunnel, which is expected to be completed in 2035. The report also references early work related to North River Tunnel rehabilitation, slated for completion in 2038.

This is reported by the railway transport news portal Railway Supply.

Amtrak OIG Hudson Tunnel Project findings on near-term progress

Drawing on interviews, site visits and a review of more than 650 documents, the OIG says Amtrak has made headway on obligations that support construction and future operations. The assessment points to progress in organizing the team, moving near-term tasks forward, and starting the planning needed for testing and commissioning tied to the new tunnel.

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Even so, the OIG’s assessment is that execution risk remains—especially when coordination with partners and internal stakeholders shapes responsibilities, schedules and the flow of information.

Where the OIG says coordination and risk management need work?

The OIG lays out three areas Amtrak should address to strengthen Hudson Tunnel Project oversight.

Role clarity with partners. The report says disagreements have surfaced over Amtrak’s involvement with design and project management on construction where it is not the lead agency, as well as over how Amtrak fits into the overall risk management process. Those differences, the assessment suggests, can complicate responsibilities and access to information.

Stronger internal coordination. The OIG calls for greater involvement from parts of Amtrak such as accounting and procurement. Bringing internal stakeholders in earlier would help them understand requirements and plan their activities successfully, the report says.

Better project document management. Amtrak has established a web-based system intended to store thousands of project records. The assessment notes that not all participants have used it consistently, and officials are working to address the issue so the project document management system can operate as intended.

Governance, funding, and the Gateway Development Commission

The report underscores that Amtrak is not the primary agency for the project. Construction and delivery sit with the Gateway Development Commission (GDC), a public authority created by New York and New Jersey, as described in the U.S. Department of Transportation Build America Bureau project summary.

Within that structure, the OIG says Amtrak’s role includes an Amtrak $1.016 billion contribution, some labor support for construction, and responsibility for cost overruns in certain areas. The assessment ties Amtrak role clarification and risk management to information-sharing as well, saying the GDC has not provided Amtrak access to some documents that it says could affect competitive bidding—reflecting differing views about what information Amtrak should see.

The report also illustrates how internal communication can affect financial reporting. In one case, accounting officials were unaware of a payment of more than $100 million to the GDC; after the OIG alerted them, the accounting group recorded a refund that ensured Amtrak’s fiscal-year-end statements were accurate.

Recommendations and Amtrak’s planned actions

The assessment makes four recommendations intended to clarify Amtrak’s role with other partners. It also recommends that Amtrak and the GDC work to ensure Amtrak has adequate information on project risks, that Amtrak identify its internal stakeholders and assign individuals to specific activities, and that the document management system be finalized.

In a response included with the assessment, Laura Mason, Amtrak’s executive vice president for capital delivery, said the company agrees with the recommendations. She noted that Amtrak has acted on two of them and anticipates completing actions on the remaining items by mid-2026.

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