(The following story by Ron Marsico appeared on the Star-Ledger website on November 15.)
NEWARK, N.J. — Upping its stake in mass transit, the Port Authority of New York and New Jersey plans to increase its commitment today from $2 billion to $3 billion for a new trans-Hudson River passenger rail tunnel, according to transportation officials.
Authorities will help pay for the extra outlay with increased tolls at bridges and tunnels and higher PATH rail fares, all also expected to be announced today, officials said. Cash tolls at the crossings will rise to $8 from $6, while the train fares will jump to $2 from $1.50.
The $3 billion pledge to the rail tunnel will be part of the agency’s overall 10-year, $29.5 billion capital budget to be unveiled at the Port Authority’s board of commissioners meeting this afternoon in Manhattan, officials said.
The rail tunnel will cost at least $7.2 billion overall, with $1 billion also committed from New Jersey coffers and an unspecified amount of federal funding anticipated.
Meanwhile, the Port Authority today also plans to announce an extra $1 discount at tunnels and bridges for the environmentally conscious. It will be offered as a special E-ZPass “green” tag for motorists driving hybrid vehicles, according to individuals familiar with that pending benefit. Regular E-ZPass discounts during peak hours will be ended, but remain during off-peak times, providing savings of $2 per trip.
Agency representatives would only publicly discuss the extra $1 billion for the rail tunnel.
“The project is one of our top priorities, and it’s a top priority of both states,” said Marc La Vorgna, a Port Authority spokesman.
Gov. Jon Corzine and New York Gov. Eliot Spitzer share control over the Port Authority and are expected to support the package of initiatives.
The $3 billion investment in the rail tunnel to move more peak-hour NJ Transit commuter trains between New Jersey and Penn Station in Midtown Manhattan, as well as another $1.3 billion targeted for PATH system improvements, represents a major turnaround for an agency that historically has been cool to mass transit.
Port Authority officials were forced by New Jersey leaders to take over PATH in 1962, as part of the deal that would allow the agency to build the World Trade Center complex in Lower Manhattan.
For decades, investment in PATH did not keep up with needs, and the agency has had to announce upgrades of the signal system and replacement of rail cars in recent years. For an agency that has a zeal to keep its bottom line black, the red ink from PATH has been significant; last year alone the line lost $187 million.
Putting another $1 billion into the rail tunnel will help Port Authority officials characterize the toll and fare hikes as a way to invest significant sums of money into major infrastructure projects to benefit the region. The agency has said the project is critical to relieving rail delays through the existing, over-utilized rail tunnel that was built roughly a century ago, as well as to reduce vehicle traffic at the Hudson River crossings.