The cost to overhaul Newark Liberty International Airport’s AirTrain has risen to $3.5 billion, a 75% increase, according to the Port Authority of New York and New Jersey. The new cost is $1.45 billion more than originally estimated. The increase is due to challenges caused by the COVID-19 pandemic, which led to higher construction costs and supply chain issues.
North Jerseyreported that Port Authority s Chief Operating Officer James Heitmann explained during the board meeting that “COVID-related construction costs, disrupted supply chains and dramatically reduced construction market risk appetite on mega-projects.” The increased projection affects the 2.5-mile AirTrain, which is set to modernize transit to and from Newark Liberty International Airport.
In response to the soaring costs, a significant contract of $1.2 billion was awarded to Tutor Perini Corp. and O&G Industries for the design and construction of an elevated railway and three new stations, according toCrain’s New York. This contract forms the core of the redevelopment project for Newark airport and includes plans for a future new Terminal B station. The construction is slated to begin in the third quarter of 2025, and the AirTrain is expected to be operational by 2030.
Earlier, the Port Authority had teamed up with the Austrian-based Doppelmayr for the initial system design and construction, alongside a 20-year maintenance contract. This monumental makeover is intended to replace an aging monorail system in service since 1996 and not designed for the current volume of traffic, as elucidated byCrain’s New York. Port Authority Executive Director Rick Cotton stated that a new AirTrain is essential to meeting the increasing volumes at airports and providing a world-class passenger experience for Newark Liberty passengers.
To shoulder the unexpected expense increase, the Port Authority plans to adjust funds by postponing and reducing expenditures on other projects through 2026. This will include deferring parts of the PATH expansion among other initiatives so as to spread the financial burden across the agency’s portfolio. Despite these fiscal adjustments, the commitment to replace the present AirTrain.
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