Skanska-led Consortium Wins $1 billion New York Subway Extension Contract

A Skanska, Traylor Bros, and Walsh Construction consortium will extend the Second Avenue Subway’s Q line into East Harlem, adding three stations between 96th and 125th streets.

Source : Unsplash

October 1, 2026

Author : Patty Allen

Pennsylvania Station, also popularly known as Penn Station, is one of the busiest transit hubs. 600,000 passengers pass through the station every day, making it indispensable to the public. The USDOT and Amtrak selected a joint venture led by the Swedish-based infrastructure group Skanska as Master Developer of the New York Penn Station Transformation Project.

Traylor Bros and Walsh Construction join Skanska in the JV for the $1.02 billion contract for Phase II of the Second Avenue Subway in NYC. The project scope includes extending the Q line to 125th Street and constructing new stations for the future 106th Street station. It will also help ease congestion on the centuries-old Lexington Avenue line while expanding transit access for people on the East Side.

The consortium was selected by the Metropolitan Transportation Authority (MTA) to deliver design-build services. Mott MacDonald will lead the Phase II designs. 

The billion-dollar project also includes designing and constructing new subway station structural shells between 105th Street and 110th Street to make way for the 106th Street station. 

The scope also includes 

  • constructing structural tie-ins to the existing tunnel
  • excavation and earthwork
  • installing roadway decking to maintain traffic flow
  • building at- and below-grade structures for two station entrances
  • utility support and reconstruction
  • extend Q line into East Harlem and Harlem
  • improve connectivity and reduce commute time with a new station at 106th and 116th Street on Second Avenue
  • constructing terminal station at 125th Street and Lexington Avenue to serve as a key transfer point to the 4/5/6 lines and Metro-North

"We're proud to have been selected for the second phase of the Second Avenue Subway, which will significantly improve mobility for New Yorkers by expanding Q line access into East Harlem and Harlem," said Michael Viggiano, executive vice president of Skanska USA Civil.  

Phase I of the Second Avenue Subway project extended service from 63rd Street to 96th Street and continued the northward expansion of the line to 125th Street. The first phase was spearheaded by Skanska, in collaboration with J.F. Shea Construction Inc. and Schiavone Construction Co. Inc.

After the second phase is complete, the Second Avenue Subway will serve as a two-track corridor from 125th Street to Lower Manhattan, with connections to West Midtown and Brooklyn.

Construction is expected to be completed in Q3 of 2030.

Category : Investment in Infrastructure Local Government Railroads

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