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TagsBY BOB HOLT
NEWJERSEYNEWSROOM.COM
Amtrak is in preliminary talks with New Jersey Transit to bring back the plan to build a commuter rail tunnel between Manhattan and New Jersey,
Al Engel, Amtrak Vice President of High Speed Rail said the railroad was beginning to explore what value there is in the ARC (Access to the Region's Core tunnel) work that can be salvaged.
According to Reuters, Amtrak spokesman Cliff Cole said the possibility of a revival of the project was first publicly stated by a senior Amtrak official on Nov. 4.
The $8.7 billion tunnel under the Hudson River, which would have been America's largest public works project, was canceled on Oct. 27 by New Jersey Gov. Chris Christie, who said the state could not afford likely cost overruns.
When Christie terminated the $8.7 billion NJ Transit Hudson River tunnel project last month over those concerns, he said he would support the possibility of a joint Amtrak-NJ Transit tunnel to Penn Station. So did Amtrak, which expressed through a spokesman willingness to work with the state.The project, which had been estimated to cost $9.77 billion, could have grown to as much as $14 billion with cost overruns, which led Christie to cancel it rather than require taxpayers to write a "blank check" despite last-minute federal offers.
The Asbury Park Press reports the $3 billion in Federal Transit Administration "new starts" money will be lost.
Officials said that money cannot be used for a joint Amtrak-NJ Transit tunnel. Amtrak is funded through the Federal Railroad Administration.
While Amtrak has been chronically under-funded throughout its 39-year history, experts believe Congress would look favorably on funding high-speed rail on the Northeast Corridor because it is home to Amtrak's 150-mph Acela Express trains and carry the largest number of riders in the Amtrak system.
An Associated Press report on philly.com read that in September, Amtrak unveiled its vision for a $117 billion high-speed rail line that would require building a new set of tracks along the entire Northeast Corridor, from Boston to Washington, D.C.
Another cost-containing idea was suggested by attorney and author Barry LePatner, who said that governments have to negotiate project costs and cap overruns before work starts on major projects.
"There is protection for the states because contractors won't hold the taxpayers hostage," LePatner said. "We have to change the way we contract for services on our infrastructure. It must be converted to a true fixed price and hold contractors accountable."
NJ Transit spokesman Paul Wyckoff confirmed the conversations, but called them "more exploratory than preliminary."
Michael Drewniak, Press Secretary to Governor Chris Christie, released this statement concerning the ARC tunnel:
"To repeat yet again, the ARC Tunnel project is over. While no new conversations have taken place between Amtrak and NJ Transit, the Governor previously tasked both DOT Commissioner James Simpson and NJ Transit Executive Director James Weinstein to work with the pertinent partners to explore fiscally viable alternatives for a trans-Hudson tunnel. As such, we will continue to explore solutions to the trans-Hudson transportation challenge."
Jeff Tittel, Director of the New Jersey Sierra Club, had this to say about the possible second life for the ARC tunnel:
"Reports today that NJ Transit official are meeting with Amtrak over new tunnel to NY is the best news we have heard since the cancelling of the ARC Tunnel Project. Having the federal government in a lead role makes sense since this Tunnel should be for the region not just NJ. This partnership will save NJ Taxpayers money since if it is an Amtrak project they will put more funds into it. This new Tunnel will go to Penn Station and allow for through trains to Long Island or New England it will allow for access to the eastside and do the other things ARC was supposed to do. We will have a tunnel that works, not just a tunnel to Macy's Basement, We will save money and get commuters to work more efficiently. We think this is a Win-Win-Win for New Jersey!"
New Jersey Assembly Transportation Chairman John Wisniewski (D-Middlesex) released the following statement Monday on reports of discussions between Amtrak and NJ Transit:
"I encourage Amtrak and NJ Transit to continue their discussions, but the bottom line is Gov. Christie mismanaged this project so badly that we've apparently already lost the $3 billion in federal aid allocated for this project. That stunning lack of foresight on the governor's part will hurt our taxpayers and economy for years to come."
Using the BOT system of financing. Or Amtrak do a PO to a New Co Holding that BOT the tunnel. If Amtrak have an structured financing adviser, the deal is possible.
www.negrininvest.com