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The Port Authority of New York and New Jersey has awarded a $1.18 billion contract to a joint venture between Tutor Perini and O&G Industries for the new AirTrain project at Newark Liberty International airport, according to a November 14 press 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 have not been able to keep up with increased travel volume since the airport’s large Terminal A opens in 2023, the statement said.
“As we work on a new modern airport in Newark that will include new or expanded airport facilities, a reliable mass transit system at the airport will ensure that passengers and airport workers can get where they need to go in a new state of the art … state-of-the-art AirTrain system,” Port Authority President Kevin O’Toole said in the statement.
It’s the second notable win for the JV in as many weeks. ahead of Tutor Perini’s third term lecture On Nov. 6, the Los Angeles-based heavy civil contractor announced that its JV with Torrington, Conn.-based O&G was the apparent bidder selected for a new Manhattan prison in New York City. The two companies have worked together on 11 major infrastructure projects nationwide, according to the release.
While Tutor Perini did not put an exact dollar amount on the Manhattan jail project, he said he expects to negotiate terms and pricing for the multibillion-dollar job in the near future. Tutor Perini won a $2.95 billion contract build the city’s Brooklyn jail last year
Tutor Perini has racked up multibillion-dollar awards of late, to the point where his portfolio has ballooned to $14 billion, with the results of other deals pending, including the $550 million Raritan River Bridge replacement in Nova jersey Chairman and CEO Ron Tutor said on the company’s recent earnings call that it also plans to submit bids for the $750 million Manhattan tunnel this month, as well as the bus terminal replacement of Midtown with $2.2 billion in February.
Given the current size of its portfolio and the potential to add more awards from pending and upcoming deals, Tutor said the company could take a pause to carry out projects of more than 500 million dollars in order to guarantee the effective execution of their jobs already awarded. That said, he also indicated that the company 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 short term
To deliver the AirTrain Newark project, the Port Authority 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. He said the cost increase stemmed from a five-year delay due to the COVID-19 pandemic, high inflation and supply chain issues and risk premiums that come from megaprojects.
The Port Authority expects construction on the new AirTrain Newark system to begin in 2025 and expects passenger service to begin in 2030.
