Listen to this articleThe Regional Plan Association (RPA) is out with a new report analyzing the economic activity the Hudson Tunnel Project will generate. The study anticipates an even bigger expected impact than originally estimated.
Now, HTP work is expected to generate $19.6 billion in economic activity and create 95,000 jobs during construction. That’s an increase of 20,000 jobs from previous estimates. Additionally, three early work components currently underway represent roughly $1 billion in awarded contracts, according to the report. They will yield 7,500 jobs as well as generate $1.5 billion in economic output and $625 million in labor income.
The full report is available here. It uses research done on behalf of the Gateway Development Commission. The GDC oversees the effort, often described as the nation’s most critical infrastructure project.
“If the same multipliers are applied to the total direct spend for the Hudson Tunnel Project, the $16.04 billion project will incrementally generate $19.6 billion in economic activity and create approximately 95,000 jobs during its construction – 20,000 more jobs than was previously estimated in the 2017 Environmental Impact Study,” the report explains.
“This is incredible news for our region,” it continues. “The majority of direct jobs are for construction and will largely be filled by regional union workers, and the remaining jobs are positions created through direct and induced spending. This large number of jobs created by the Hudson Tunnel Project also means our region needs to prepare an adequate workforce to meet this demand over the 10+ year lifespan of the project.”
Essential work
“The Hudson Tunnel Project is the most pressing infrastructure of our time – and it will bring enormous benefits to our region and nation,” said Tom Wright, president and CEO of RPA. “This new report emphasizes the broad economic benefits of the project – which are already being generated by $1 billion in early work contracts.”
Wright explained that RPA research found the region’s economic ties are strong. However, a reliable, 21st-century transportation system is also essential to maintaining this connection, according to the report.
“The Hudson Tunnel Project will set the stage for long-term economic growth by connecting more residents to jobs in the region and expanding the size of the workforce that employers can draw from,” said Wright.
The study’s findings mark continued momentum for the project and GDC. It also comes on the heels of several notable announcements and developments in recent weeks and months, such as:
“The $1 billion in construction contracts we’ve awarded so far are already creating thousands of jobs and pumping millions of dollars into the economy – and that’s only the beginning,” said GDC Chief Executive Officer Kris Kolluri. “Now this report shows the overall impact of the project will be even greater than we thought – and that the Hudson Tunnel Project is a big win for the region and the nation.”
Now is the time
“It is critical that we continue long-term transportation and infrastructure planning in our region and that the federal government continues to invest in it. With an unprecedented amount of money available for infrastructure projects thanks to the Bipartisan Infrastructure Law, now is the time to ensure the best systems are in place to take advantage of this historic federal funding and get these critical projects – most importantly, the Hudson Tunnel Project – built,” the report concluded.
“It is welcome news that the early work components are already producing early economic benefits – and we look forward to monitoring the widespread economic, environmental and social benefits produced as the project advances.”
