Skanska has been awarded a design/build contract for a new rail tunnel in New York by client New Jersey Transit.

The contract relates to the Palisades Tunnel, which is part of the new Trans-Hudson Express Project (THE Project), construction of which will double rail capacity between New Jersey and New York.

U.S. Skanska’s share of the contract amount is USD 52M, which will be included in second-quarter order bookings. Skanska has a 20 per cent share of the total contract amount of USD 258M.

Palisades Tunnel comprises1,600m open-cut twin tunnels that will be bored by TBM. The finished internal diameter of the tunnels will be 7.2m. A large shaft measuring 36m in diameter and six cross passages also form part of the project.

Work on the project has begun and will be completed in December 2013.

The remaining parts of the contract are being performed by Schiavone and Shea who have shares of 50 and 30 per cent, respectively.