Corporation to oversee new Hudson rail tunnel, officials say

In what one official called "a very big first step," an agreement has been reached to form a corporate entity within the Port Authority to handle a massive renovation of the aging Amtrak tunnel under the Hudson River.

The century-old rail tunnel, worn by age and ravaged by superstorm Sandy, will cost up to $20 billion to renovate. The federal government and Amtrak will pay half the cost, according to the agreement announced jointly Thursday by New Jersey Gov. Chris Christie, New York Gov. Andrew M. Cuomo and other officials.

"It was a long struggle but getting all the parties on the same page is a very big first step," Sen. Chuck Schumer (D-N.Y.) said in a statement.

"We will scour every part of the federal government to get our 50 percent, and we know the states will do the same. The Gateway Development Corp., which we proposed in August and provides a way for all four key stakeholders to work together effectively, is the best way to get this project moving," Schumer said.

The tunnel is a crucial link in Amtrak's eight-state northeast corridor and is also used by the NJ Transit commuter line. Amtrak has estimated that the renovation could be completed by 2030.

The Gateway Development Corp. will have one representative from each state, one from Amtrak and one from the U.S. Department of Transportation, the officials said.

A Port Authority member will chair the board and an Amtrak representative will be vice chairman. Any action by the board will require approval from all four of its members, the officials said.

The "primary staff" -- not further identified -- will be provided by the Port Authority and Amtrak; facilities and logistical support will be provided by the Port Authority, the officials said.

The Port Authority said in a statement that it "looks forward to playing a vital role in moving this essential project forward for the good of all trans-Hudson rail riders, the Northeastern Corridor and the nation."

"Building transportation links across the Hudson River has been a core Port Authority mission throughout its 94-year history," the agency said.