OIG: Amtrak could lower its risks on Hudson Tunnel project

Amtrak has made progress on its responsibilities for the Hudson Tunnel Project, but could take actions to reduce risk and improve project performance, according to a new Amtrak Office of Inspector General report.

The $16 billion Hudson Tunnel project entails construction of a new two-tube rail tunnel under the Hudson River between New Jersey and New York,  plus the rehabilitation of the existing North River Tunnel. The new tunnel is slated for completion in 2035 and the rehabilitation in 2038. The project is a major part of the $40 billion Gateway program of projects to improve rail infrastructure between New Jersey and New York City.

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

However, Amtrak could better protect itself from financial liabilities if it had a more active role in the project's risk management procedures. The report details that Amtrak was responsible for several cost overruns despite not knowing about those specific project's risks. The GCD told OIG officials that Amtrak could not access those project risk factors as they contain sensitive information that could affect competitive bidding, despite Amtrak working on other confidential procurement projects.  Amtrak should request to be part of GCD's project risk assessments so the passenger railroad can better plan mitigation strategies and potential cost and schedule liabilities, OIG officials said.

Amtrak also should be more clear with employees about what their roles are in the project. To that end, the OIG recommended Amtrak identify and assign all related project work and finalize its project document management system.

Amtrak agreed with the OIG's recommendations and has developed plans to address the problems, OIG officials said.