Hudson Tunnel Project has been hailed as one of most significant in US

A team featuring Mace Consult and Arcadis has been handed a $665m (£494m) contract extension to its programme management role on a $16bn (£12.bn) scheme to build a new tunnel connecting New Jersey with New York.

The pair are part of a consortium called MPA Delivery Partners, which also includes US firm Parsons, that was chosen last February by the Gateway Development Commission to manage construction of the scheme which will take rail traffic under the Hudson river.

Called the Hudson Tunnel Project, the scheme is designed to improve capacity and reliability of commuter and intercity rail transit between New York, New Jersey and the Northeast Corridor on a route which runs from Boston down to Washington DC.

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Work on the new tunnel will finish in 2035 and is expected to significantly improve rail capacity in the north eastern US

The project includes construction of a two-tube, 2.4-mile-long tunnel as well as repairing operator Amtrak’s existing North River Tunnel, which opened in 1910 and was damaged during Hurricane Sandy in 2012.

The four-and-a-half year extension is part of the project which is due to finish in 2035 with the existing tunnel upgrade by 2038.

Mace is expecting the sale of its Consult business to Goldman Sachs that was announced over the summer to be wrapped up by the end of the year. No financial details have been given but the price tag for the US bank’s 75% stake is believed to be around $1bn (£740m).