Webuild's Lane, ACS firms win $466 million Hudson Tunnel contract

(Reuters) - Webuild's U.S. unit Lane is part of a joint venture that won a $466 million contract to build railway tunnels as part of the Hudson (NYSE:HUD ) Tunnel Project in the New York City area, the Italian construction group said on Thursday.

Lane has a 35% stake in the deal while Schiavone and Dragados, both part of Spanish group ACS, have stakes of 35% and 30% respectively, Webuild said.

Webuild shares were up 2.21% at 0849 GMT on the Milan bourse following the news.

The Hudson Tunnel links Amtrak rail and state commuter lines between New York City and New Jersey and the project is expected to cost about $17.2 billion.

The contract involves the design and construction of two twin rail tunnels, each about 1.6 kilometres long with an internal diameter of about 8 metres, the statement said.

They will be part of the new Palisade Tunnel, which is one of the three sections of the new Hudson Tunnel.

The project, which has suffered long delays, will also repair an existing tunnel, it said.

Completion is scheduled for 2027.

Source: Investing.com