Hudson Tunnel Project risk management: OIG urges Amtrak action

Amtrak’s Office of Inspector General says Hudson Tunnel Project risk management could be tighter, even as the passenger railroad has advanced key responsibilities tied to the effort, according to a press release from the Amtrak Office of Inspector General and reporting by Railway Supply.

The Hudson Tunnel Project is budgeted at $16 billion and includes two major components: construction of a new two-tube rail tunnel under the Hudson River between New Jersey and New York, plus rehabilitation of the existing North River Tunnel, as reported by Progressive Railroading.

The new tunnel is slated for completion in 2035, with rehabilitation targeted for 2038. The work sits within the larger Gateway Program, a $40 billion set of projects aimed at improving rail infrastructure between New Jersey and New York City.

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What the OIG report says about project oversight

In the OIG report on Hudson Tunnel Project activity, the program is described as the largest federally funded mass transit project in U.S. history. It is overseen by the Gateway Development Commission (GDC), a public authority. In a press release, OIG officials said Amtrak has made substantial progress, including acquiring real estate parcels, staffing its project team, and beginning plans for testing and commissioning the two tunnels.

Hudson Tunnel Project cost overruns and risk access

At the same time, the report lays out why Amtrak risks on Hudson Tunnel project delivery could increase without a stronger role in risk procedures. It states that Amtrak was responsible for several cost overruns despite not knowing about those specific project risks. The GDC told OIG officials that Amtrak could not access those project risk factors because they contain sensitive information that could affect competitive bidding, even though Amtrak works on other confidential procurement projects. However, Amtrak could better protect itself from financial liabilities if it had a more active role in the project’s risk management procedures.

Clarifying roles and project documentation

The watchdog also recommended that Amtrak be clearer with employees about their responsibilities on the project. To support that, the OIG advised Amtrak to identify and assign all related project work and finalize its project document management system.

Amtrak agreed with the recommendations and has developed plans to address the issues raised, OIG officials said.

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