When Gov. Chris Christie canceled the ARC Tunnel in the fall, transit advocates from around the region were exasperated. Although the project had its design flaws on the Manhattan side, 20 years of planning and lobbying were flushed down the toilet by one stroke of the Governor’s pen. Furthermore, the region needs improved cross-Hudson rail access and simply cannot afford to wait another two decades to see shovels hit the ground.
Luckily, the major players involved in the region’s transportation policy seem to recognize the importance of cross-Hudson crossings. In a talk last week, Anthony Coscia, the chairman of the commissions of the Port Authority, spoke with financiers and construction magnates on the need to build. Transportation Nation was there and offered up a transcript. Coscia spoke a length about the need to reform pricing and the cost of building as well as the funding mechanisms. He pushed for more private sector investment opportunities as well.
The part that caught my attention was his bit on the ARC Tunnel. I’ll quote at length:
The Port Authority’s role was as a financing partner in the project. We did have certain responsibilities in terms of acquiring real estate on the New York side, but that was more a legal function of our ability to acquire land in the state of New York, which New Jersey Transit didn’t have. Our real role was: we were a $3 billion partner in the project. The reason we were a $3 billion partner in the project is that our mission is to move people between New York and New Jersey. We’re of the view that building another lane in the Lincoln Tunnel isn’t really going to solve that problem, even if we could do it, which we can’t. Mass transit or intercity rail was our way of addressing that problem.
I have to say that—since finance is really where my professional activities have been—I’ve never gone through an episode where I raised $3 billion dollars and it hasn’t been used. That’s never happened. But then it happened. We did raise $3 billion for the project, but I think [Governor Christie], for a lot of reasons that are fundamental of the time we’re in right now, was not comfortable going ahead with the project.
We are still looking for solutions to trans-Hudson commuting, and those solutions will come in some form. I also serve on the Board of Amtrak and I know that Amtrak has remained pretty dedicated to finding a solution to that issue as well, because the Northeast corridor is very dependent upon it.
We have the $3 billion and we are reinvesting it in other projects that hopefully will add to the region’s transportation strength. In terms of “will a new tunnel be built?” I think the answer to that is yes, but it will be in a configuration, of a financial model, that will be acceptable to a broad variety of stakeholders, and that’s still a work in progress.
It’s interesting here to see Coscia talk directly about the funding. Christie has long maintained that New York was not a solid funding partner, but due to its contributions to the Port Authority, a good deal of money came from New York. It wasn’t as a big a contribution as New Jersey’s portion, but considering which state’s residents stand to benefit more, it was arguably a fair allocation of dollars.
Meanwhile, it’s comforting to hear that the Port Authority is still working toward an ARC-like solution. Unfortunately, it sounds as though concrete plans are still a few years off, but hopefully, with a groundswell of support and an obvious need, the region can find something to build before the decade is out. We can’t afford to wait much longer.
Leave a Reply