NJ Transit selects new operator of Hudson-Bergen light-rail system

New Jersey Transit  has selected the ACI-Herzog joint venture to be the new operator of the Hudson-Bergen light-rail (HBLR) system as of September 2025.

The approved $1.5 billion contract includes operation of the light-rail system and maintenance of the vehicles, infrastructure and the right of way, according to a NJ Transit press release.

The joint venture will become the HBLR’s second operator since operations began in 2000, NJ Transit officials said. The contract includes a 15-year base period with two five-year options for extension.

The rail line always has been operated under a design-build-operate-maintain contract, NJ Transit officials said. The construction component of the contract was completed in 2000 and will expire in 2025. The current contractor, 21st Century Rail Corp., built the HBLR system and has operated it since then, according to NJ.com. The contractor will transition the operation and maintenance of the rail line to ACI-Herzog by Sept. 15, 2025.

The HBLR runs north-south along the Hudson River in Hudson County, New Jersey, for 20.6 miles with 24 stations; it provides service to more than 48,000 daily weekday riders.