MPA Contract Extended to Continue Delivering the Transformational Hudson Tunnel Project, the Most Urgent Rail Project in United States

Rhea-AI Summary

Parsons Corporation (NYSE: PSN) and its joint venture partners have secured a $665 million contract extension for the Hudson Tunnel Project (HTP), extending their role for 4.5 years. The transformational infrastructure project is progressing on schedule, with the new Gateway Tunnel expected to complete in 2035 and existing tunnel rehabilitation by 2038.

The project is projected to create over 95,000 jobs nationwide and generate more than $19 billion in economic activity. The scope includes constructing a new two-tube rail tunnel under the Hudson River, rehabilitating the existing 115-year-old tunnel, and adding nine miles of new passenger rail track between New York and New Jersey.

Positive

• None.

Negative

• Extended project timeline with completion not expected until 2035-2038
• Complex infrastructure project with significant execution risks

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Hudson Tunnel Project Proves that America is Building Again

NEW YORK, Sept. 30, 2025 (GLOBE NEWSWIRE) -- MPA Delivery Partners, the joint venture of Mace, Parsons Corporation (NYSE: PSN), and Arcadis (EURONEXT: ARCAD) announced today that the team has been awarded a $665 million, 4.5-year contract extension by the Gateway Development Commission (GDC) to continue managing the successful delivery of the Hudson Tunnel Project (HTP).

The HTP is progressing on-schedule and expected to create more than 95,000 jobs around the United States and generate more than $19 billion in economic activity. In addition to the thousands of talented employees in the New York/New Jersey region, the project is driving demand for U.S. suppliers of steel, aggregates, rail and track, and ventilation systems. Companies from North Carolina, Texas, Pennsylvania, Ohio, Alabama, Colorado, and Tennessee are benefiting from the Hudson Tunnel Project, unlocking the power of American ingenuity, and proving that the country is building again. With multiple active construction sites managing different portions of the HTP, the project is on-schedule for the new Gateway Tunnel completion in 2035, and the existing tunnel’s rehabilitation by 2038.

“This is a once-in-a-generation project and a true collaboration between the public and private sectors that will serve as a model for delivering future mega-infrastructure projects around the world,” said Joe Marie, project executive for MPA Delivery Partners. “We are united in our goal of successfully completing this critical project, which will transform the Northeast Corridor and deliver billions of dollars of economic growth to the U.S. economy. GDC and MPA function as a fully integrated partnership, working closely together to ensure the Hudson Tunnel Project is completed on time and within budget.”

The Hudson Tunnel Project is the cornerstone of the Gateway Program and is widely considered the most urgent rail infrastructure project in the United States. The transformational project involves building a brand new two-tube rail tunnel under the Hudson River and rehabilitating the existing 115-year-old tunnel as well as nine miles of new passenger rail track between New York and New Jersey to improve passenger rail service and enhance the reliability of the Northeast Corridor. These improvements will accelerate economic prosperity and growth around the country while improving long-term reliability and redundancy of the regional and national rail networks for NJ TRANSIT and Amtrak. Ultimately, the Hudson Tunnel Project will establish a new 100-year legacy of engineering excellence built by and for America.

MPA was selected as the delivery partner on the project in February 2024. The delivery partner model has an internationally proven track record for helping public agencies deliver large-scale infrastructure projects. The collaborative delivery partner model has an internationally proven success record for helping public- and private-sector organizations deliver large-scale capital projects with benchmark efficiency and socioeconomic benefits.

About Parsons

Parsons (NYSE: PSN) is a leading disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and intelligence, space and missile defense, transportation, environmental remediation, urban development, and critical infrastructure protection. Please visit Parsons.com and follow us on LinkedIn and Facebook to learn how we're making an impact.

Media Contact: 
Bernadette Miller
+1 980.253.9781
Bernadette.Miller@parsons.com

Investor Relations Contact:
Dave Spille
+1 703.775.6191
Dave.Spille@parsons.us

FAQ

What is the value and duration of Parsons' Hudson Tunnel Project contract extension?

The contract extension is valued at $665 million and will last for 4.5 years, awarded to MPA Delivery Partners (Mace, Parsons, and Arcadis joint venture).

When will the Hudson Tunnel Project be completed?

The new Gateway Tunnel is scheduled for completion in 2035, with the existing tunnel rehabilitation to be completed by 2038.

How many jobs will the Hudson Tunnel Project create?

The project is expected to create more than 95,000 jobs across the United States and generate over $19 billion in economic activity.

What is the scope of the Hudson Tunnel Project?

The project includes building a new two-tube rail tunnel under the Hudson River, rehabilitating the existing 115-year-old tunnel, and constructing nine miles of new passenger rail track between New York and New Jersey.

Which states will benefit from the Hudson Tunnel Project?

Besides New York and New Jersey, companies from North Carolina, Texas, Pennsylvania, Ohio, Alabama, Colorado, and Tennessee are benefiting from supplying materials and services to the project.