
It might yet be the ARC Tunnel’s day of reckoning. According to unsourced reports out of New Jersey, Gov. Chris Christie will at least take the weekend to ponder the fate of this vital rail project.
Meanwhile, although I reported this morning that the feds’ estimates featured cost overruns of just $1 billion, Secretary of Transportation Ray LaHood has broken his silence to explain the government’s cost projections for the tunnel. In his statement, he explains the upper and lower bounds of the FTA projects. He said:
In response to press reports, I want to clarify the range of numbers regarding the ARC tunnel project.
The Department of Transportation has estimated the low-range cost of the project at $9.775 billion. The mid-range estimate is $10.909 billion and the high-end range is $12.708 billion. For complex projects, we do a range of estimates in the interests of accuracy. However, DOT is committed to working together through the life of the project to keep costs down to the lowest estimate.
In addition, we’ve been discussing with New Jersey officials the simultaneous construction of the $775 million South span of the Portal Bridge project.
We are committed to continuing the constructive dialogue we have had for the last two weeks with New Jersey officials to find a way to move forward on the ARC tunnel project, which will double commuter train capacity between New Jersey and New York.
This statement by LaHood reminds me of the FTA’s approach to the Second Ave. Subway. Last year, the feds released their own cost estimates for Phase 1 of the SAS, and they include a completion date as late as 2018 and a budget as high as $5.7 billion. (See this chart for more.) The MTA has maintained that the project will wrap on time in late 2016 or early 2017 and will cost under $5 billion. It’s important to remember that the federal are just that. They’re trying to keep the costs low, and the final price could range from $9.7-$12.7 billion.
It’s clear that Christie is facing a budget crisis of sorts with this project, but it’s too important to scrap now. We’ll find out next week if he and LaHood can reach an agreement to keep the ARC Tunnel on track.
Leave a Reply