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Press Release
February 15, 2002
MTA Announces Award to Reconstruct 1/9 Subway Lines

MTA Chairman Peter S. Kalikow and MTA New York City Transit President Lawrence Reuter today announced the award of a contract to reconstruct portions of the 1 & 9 subway lines that were destroyed by the terrorist acts of September 11>th>. The 1 & 9 lines serve the west side of lower Manhattan and connect it to critical intermodal facilities such as the Penn Station to the north and the Staten Island Ferry to the south.

The contract, awarded to a partnership of Tully Construction and Pegno Construction, both of whom have worked for the City of New York to perform recovery and demolition work on the site since mid-September, allows for a number of time and cost efficiencies that will save the MTA and its funding partners tens of millions of dollars.

Governor George E. Pataki said, "The MTA is to be congratulated on this initiative. This project is a win for New Yorkers since it signals our commitment to the accelerated rebuilding of the 1 & 9 subway to lower Manhattan by the end of this year.

"As a result of this work, we expect that by late fall tens of thousands of workers in lower Manhattan will be able to resume their normal travel routines using the Rector Street and South Ferry stations that had been cut off from the subway system since September 11>th>," he added.

"The most remarkable element of this award is that it has taken advantage of the tremendous economies of scale by having a firm that is already on site and familiar with the territory performing the work." said Mr. Kalikow.

The anticipated time and dollar savings are made possible by the fact that Tully and Pegno also teamed with Yonkers Construction to win the recent bid to rebuild the Port Authority Trans Hudson (PATH) station adjacent to the MTA site. Management overhead, administration, insurance costs are just some of the areas where significant savings were realized by the synergy between the projects.

In addition, the lower than originally anticipated cost of the contract, at $92 million, was also made possible by the rapid excavation of the site above the subway station over the past five months. The extent of the excavation to date makes unnecessary the expenditure of millions of dollars that had been estimated would need to be spent to simply reach the damaged sections of the facility. This contract, however, will not replace the Cortlandt Street station itself. That project, also part of the total reconstruction effort, will be designed and awarded in the future as the MTA works with the Lower Manhattan Development Corporation and other entities to determine the most appropriate location for street access and integration with the PATH system.