NJ Transit Board of Directors advances construction of Hoboken Terminal; approves ground lease agreement for Hoboken Connect Project

March 13, 2024
The construction of Hoboken Terminal is part of Phase 2 of the Long Slip Fall and Rail Enhancement Project while the Hoboken Connect Project is a multi-phased initiative that will consist of mixed-use development and public infrastructure improvements.

The New Jersey Transit (NJ Transit) Board of Directors approved a contract for construction of six new tracks, three ADA-accessible high-level platforms and a new passenger/rail personal facility at Hoboken Terminal as part of Phase 2 of the Long Slip Fall and Rail Enhancement Project. The board has also approved a ground lease agreement with LCOR Hoboken Rail Station Redevelopment, LLC, for the Hoboken Connect project, a mixed-use, multi-phase transit oriented development (TOD) project near the Hoboken Terminal. 

Long Slip Fall and Rail Enhancement Project 

The Long Slip Fill and Rail Enhancement Project area is located within the Hoboken Rail Yard along the Hudson River Waterfront near the boundary of southern Hoboken and northeastern Jersey City. NJ Transit was awarded a Federal Transit Administration competitive resiliency grant for the project to provide flood protection, surge protection for rail yard equipment and infrastructure and flood resilient commuter tracks and platforms. 

“The approval of Phase 2 for this project marks a significant step forward in our ongoing efforts to significantly improve resiliency, accessibility and the customer experience at Hoboken Terminal,” said NJ Transit president and CEO Kevin S. Corbett. “This vital project not only enhances the experience at one of the tri-state region’s busiest intermodal transit hubs but it supports our broader resiliency strategy by fortifying our network against the impacts of extreme weather events.” 

The NJ Transit Board of Directors has authorized the agency to enter into a contract with Schiavone Construction Co., LLC, of Secaucus, N.J., for Phase 2 of construction services. The contract is worth $211 million, plus 10 percent for contingencies.   

Additionally, the board approved a separate contract with Voestalpine Railway Systems Nortrak, LLC, of Birmingham, Ala., for the purchase of special trackwork in the amount of $1.8 million, plus five percent for contingencies. The special trackwork, which is also part of Phase 2 of the project, refers to five timber turnouts, four concrete crosstie turnouts, one timber crossover and one timber double slip switch, totaling 11 individual special trackwork packages. 

Hoboken Terminal is one of New Jersey’s major transportation hubs and is served by eight NJ Transit commuter rail lines, in addition to NJ Transit bus and private carrier bus routes, the Hudson–Bergen Light Rail, the Port Authority of New York and New Jersey Trans Hudson rapid transit system and New York Waterway-operated ferries. 

 NJ Transit notes Superstorm Sandy in 2012 had a devastating impact on vulnerable areas of the transit system. The agency says the Long Slip project provides the opportunity to construct new ADA-accessible rail platforms well above surge levels that adds greater capacity at Hoboken Terminal and further ensures the integrity of the transportation network following extreme weather events. 

Phase 1 of the project – completed in June 2023 – extended the municipal sewer that permitted the former canal to be filled in. The project is part of NJ Transit’s Resilience Program.    

Hoboken Connect project 

The Hoboken Connect project is a multi-phased initiative that will consist of mixed-use development and public infrastructure improvements to the Hoboken Bus Terminal, Ferry Terminal Building and the area surrounding the rail station.  The components will be implemented in coordination during the next several years.  

“The ground lease agreement approved by our board sets the stage for an official ‘Hoboken Connect’ groundbreaking in the coming months, launching a project that will transform our Hoboken Terminal and its surroundings into one of the crown jewels of our system,” Corbett said. “This project is one of several examples of our broader TOD strategy to both generating additional non-farebox revenues, as well as driving sustainable growth through enhanced public transportation access throughout New Jersey.” 

The three proposed phases of the project will, directly and indirectly, support 5,840 jobs during the construction phases of the project and support an estimated 7,265 at full build-out once construction has been completed. The ongoing economic impact of the project is estimated at more than $2.08 billion annually at full build-out, with more than $1.0 billion estimated in annual payroll. Upon completion, the development is projected to support an estimated 3,885 direct new jobs at the development within the city of Hoboken, N.J., driving local spending and ratables while NJ Transit will benefit from non-farebox revenue ground lease payments, increased ridership and customer experience improvements. 

The Hoboken Connect project is consistent with the NJ Transit’s 2030 Strategic Plan and statewide policy objectives. 

About the Author

Brandon Lewis | Associate Editor

Brandon Lewis is a recent graduate of Kent State University with a bachelor’s degree in journalism. Lewis is a former freelance editorial assistant at Vehicle Service Pros.com in Endeavor Business Media’s Vehicle Repair Group. Lewis brings his knowledge of web managing, copyediting and SEO practices to Mass Transit Magazine as an associate editor.