Case Studies

Location: Hudson and Bergen Counties, New Jersey

P3 Option: New Build Facilities - Design Build Operate (Maintain)

Mode: Light Rail Transit

Description: The Hudson-Bergen Light Rail (HBLR) is a light rail transit system currently encompassing 23 stations. It runs north-south on the Hudson River waterfront in Hudson County, New Jersey. The eventual length of the approved system is planned at 20.6 miles.

The project is being implemented in phases. An initial minimum operable segment (MOS-I) was a $1.0 billion, 9.5-mile operating segment opened in 2000 with 16 stations, followed by several extensions completed later that year, with the final station opening in 2002. MOS-II was a $1.2 billion, 6-mile, 7-station project that opened in phases from 2002 through 2006. The line connects terminals at Tonnelle Avenue (North Bergen), Hoboken Terminal (Hoboken), 22nd Street in Bayonne and West Side Avenue in Jersey City. The next phase (MOS-III) for completion in 2010 will extend from its current southerly terminus at 22nd street one mile to 8th Street in Bayonne.

Sponsor:
New Jersey Transit
New Jersey Department of Transportation
Federal Transit Administration

Cost: $2.2 billion (MOS-I & II)

Revenue Sources:
FTA New Starts Full Funding Grant Agreements
Grant Anticipation Notes (GANs)
State Transportation Trust Fund

Project Delivery / Contract Method: DBOM 15-year fixed price contract in 1996 to design and construct 9.5-mile MOS-I with a guaranteed completion date, provide a fleet of light rail vehicles, and operate and maintain the system for 15 years. The initial contract only covered the first segment; however it was later renegotiated to include subsequent extensions.

Private DBOM Partners:
21st Century Rail Corporation (URS Washington Division - 70%; Itochu Rail Car and Kinkisharo USA - 30%)

Project Advisors:
Parsons Brinckerhoff
Booz Allen Hamilton
Nossaman, Guthner, Knox & Elliott, LLP

Lenders: None

Physical Status: The project's initial phase opened in 2000, with extensions currently in the planning stages. The next extension to 8th Street is expected to be operational in 2010. Six other expansions have been completed since the initial segment was opened in 2000.

Innovations: Part of the FTA Turnkey Demonstration Program

First DBOM transit application in the U.S. selected because of the estimated eight years that would be saved compared to the traditional multiple design/bid/award/construct approach.

Related Links / Articles:
Hudson-Bergen Light Rail Website

Press Release - HBLR 8th St. Station Construction Begins

Contact:
NJ TRANSIT
Office of Public Information
One Penn Plaza East
Newark, NJ 07105-2246
Tel: (973) 491-7078