The Port Authority of New York and New Jersey has awarded a $1.18 billion contract to a Tutor Perini and O&G Industries joint venture for the new AirTrain project at Newark Liberty International Airport, according to a Nov. 14 news release.
The joint venture will design and build 2.5 miles of elevated track and three new stations to replace the airport’s existing rail system. The original tracks opened in 1996 and haven’t been able to keep up with increased travel volumes since the opening of the airport’s large Terminal A in 2023, according to the release.
“As we work on a modern new airport in Newark that will include new or expanded airport facilities, a reliable on-airport mass transit system will ensure that passengers and airport workers can get to where they need to go on a new state-of-the-art AirTrain system,” said Port Authority Chairman Kevin O’Toole in the release.
It’s the second notable win the JV has scored in as many weeks. Ahead of Tutor Perini’s third quarter conference call Nov. 6, the Los Angeles-based heavy civil contractor announced its JV with Torrington, Connecticut-based O&G was the apparent selected proposer for a new Manhattan jail facility in New York City. The two firms have worked together on 11 large infrastructure projects nationally, according to the release.
Although Tutor Perini didn’t put an exact dollar amount on the Manhattan jail project, it said it anticipated negotiating terms and pricing for the multibillion-dollar job in the near future. Tutor Perini won a $2.95 billion contract to build the city’s Brooklyn jail facility last year.
Tutor Perini has racked up multibillion-dollar awards of late, to the point where its backlog has grown to $14 billion, with the results of other outstanding bids pending, including the $550 million Raritan River Bridge Replacement in New Jersey. Chairman and CEO Ron Tutor said on the firm’s recent earnings call that it also plans to submit bids for the $750 million Manhattan Tunnel this month, as well as the $2.2 billion Midtown Bus Terminal replacement in February.
Given the current size of its backlog and the potential to add more awards from outstanding and upcoming bids, Tutor said the firm may take a hiatus from pursuing projects over $500 million in order to ensure effective delivery of its already-awarded jobs. That said, he also indicated the firm would bid on the $3.8 billion Southeast Gateway Line light-rail project in Los Angeles, as well as the $2 billion South Jersey Light-Rail line in New Jersey, in the near term.
To deliver the AirTrain Newark project, the Port Authority’s board voted to increase the overall project budget to $3.5 billion, adding $1.45 billion to the previously approved amount of $2.05 billion. It said the rise in cost stemmed from a five-year delay due to the COVID-19 pandemic, high inflation and supply chain issues and the risk premiums that come from megaprojects.
The Port Authority expects construction on the new AirTrain Newark system to begin in 2025, and anticipates passenger service starting in 2030.
