WASHINGTON — Improvement of communications with project partners and within the company could help Amtrak reduce risks in its role in the $16 billion Hudson Tunnel Project, as could better management of project documents, the Amtrak Office of Inspector General says in a report issued today (Dec. 17).
The report did find that the company has improved in dealing with near-term obligations for the project, acquiring real estate, staffing its project team, and beginning planning for testing and commissioning of the new tunnel, expected to be completed in 2035, and rehabilitation of the existing North River Tunnel, slated to be done in 2038.
But the OIG assessment, which included interviews, visits to construction sites, and examination of more than 650 documents, found three key areas Amtrak needs to address:
- Clarification of its role with outside partners, who have had disagreements over Amtrak’s involvement with design and project management on construction where it is not the lead agency, and Amtrak’s involvement in the overall risk management process.
- Greater involvement of some sections of Amtrak, such as its accounting and procurement departments. “Coordinating with internal stakeholders as early as possible would allow them to better understand and successfully plan their activities,” the report says.
- Improved document management. Amtrak established a web-based system for storing the project’s thousands of documents, the report says, but not all project participants have used it. Officials are now working to address that issue.
Amtrak is not the primary agency on the project. The Gateway Development Commission, a public authority created by New York and New Jersey, is responsible for construction and delivery. Amtrak is contributing $1.016 billion, provides some labor to support construction, and will be responsible for cost overruns in some areas.
Questions regarding Amtrak’s role plays a part in the company’s involvement in risk management, since the GDC has not given Amtrak access to some documents that it says could affect competitive bidding, reflecting differing views of the two parties on Amtrak’s role. The significance of the internal communication was reflected, the report says, when accounting officials were unaware of a payment of more than $100 million to the GDC; alerted by the OIG, the accounting group was able to record a refund that ensured the company’s statements at the end of the fiscal year were accurate.
The report makes four recommendations regarding that would clarify Amtrak’s role with other partners. It also recommends that Amtrak and the GDC to work to ensure Amtrak has adequate information on project risks; that the company identify its internal stakeholders and assign individuals for activities identified; and that the document management system be finalized.
In a response, Amtrak’s Laura Mason, executive vice president, capital delivery, said the company agrees with the recommendations, has acted on two, and anticipates completing actions on the others by mid-2026.
The full report is available here.
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