Executive Summary
Major tunnelling projects on both sides of the Atlantic reached significant milestones last week, underlining strong momentum in global underground infrastructure alongside other major global projects. In the United States, Skanska, alongside Traylor Bros. and Walsh Construction, secured a USD 1.29 billion contract for the Hudson Tunnel Project beneath the Hudson River, as reported in a Skanska USA press release. In Europe, the Femern organisation confirmed the successful immersion of the first tunnel element for the Fehmarnbelt Fixed Link between Denmark and Germany, marking a historic step in the world’s longest immersed tunnel project. Together, these updates highlight sustained investment in complex tunnelling works and point to growing demand for specialist engineering skills in civil, rail and marine construction. [usa.skanska.com], [femern.com]
Detailed Analysis
Hudson Tunnel Project, United States
The Gateway Development Commission has awarded Package 1C of the Hudson Tunnel Project to a joint venture formed by Traylor Bros., Walsh Construction and Skanska USA Civil. Valued at approximately USD 1.29 billion, the contract covers the construction of the section of new passenger rail tunnel tubes running beneath the Hudson River between New Jersey and Manhattan. [usa.skanska.com]
The scope of works includes boring two parallel, single-track tunnels, each around 7,250 feet in length, using custom-built tunnel boring machines designed to handle mixed ground conditions under the river. In addition to tunnelling, the package includes installation of precast concrete linings and floors, construction of nine cross passages, ground stabilisation works near the Hudson Bergen Light Rail and permanent underpinning of the Willow Avenue Bridge.
This contract award represents a major step forward for the wider Gateway Program, one of the most significant rail infrastructure investments in the United States. With this package now awarded, six of the ten construction packages that make up the Hudson Tunnel Project are either underway or complete, bringing the programme closer to full heavy civil execution.
From an employment perspective, the project is expected to support thousands of jobs across engineering design, tunnelling operations, plant and equipment management, health and safety, and long-term maintenance. Large-scale rail tunnelling schemes of this nature typically require a sustained workforce over several years, providing opportunities for early-career engineers as well as experienced tunnelling specialists.
Fehmarnbelt Fixed Link, Denmark and Germany
In Europe, the Fehmarnbelt Fixed Link achieved a historic milestone with the successful immersion of its first tunnel element. The 217-metre-long concrete element was transported from the tunnel factory at Rødbyhavn in Denmark and carefully lowered into a prepared trench on the seabed of the Fehmarnbelt, following a multi-day marine operation involving tugboats and the specialist immersion vessel IVY. [femern.com]
This is the first time series-produced tunnel elements of this scale have been used in an immersed tunnel project. Each element weighs more than 73,500 tonnes and contains five tubes, accommodating both road and rail traffic alongside technical installations. In total, 89 elements will be immersed to complete the 18-kilometre tunnel, which will become the longest immersed tunnel in the world once finished.
The project is being delivered by Femern, with construction carried out by the Femern Link Contractors consortium. It forms part of the EU’s Trans-European Transport Network and has received approximately EUR 1.3 billion in EU funding. When operational, the tunnel will significantly reduce travel times between Denmark and Germany, strengthening freight and passenger connections across northern Europe.
Employment impacts are already being felt across Denmark and Germany, with roles spanning marine engineering, structural design, geotechnical engineering, logistics, quality control and environmental management. The immersion milestone signals the transition from preparation to full production, meaning demand for skilled labour is likely to remain high for several years.
A Global Upswing in Tunnelling Skills Demand
A number of large-scale tunnelling schemes have either entered early-stage construction or transitioned from planning into physical delivery over the past year. These projects are now driving demand for tunnelling engineers, TBM specialists, geotechnical professionals, site managers and skilled trades across multiple regions.
Hudson Tunnel Project, United States
The Hudson Tunnel Project has moved decisively into early construction following the award of its final major tunnelling contract. In April 2026, the Gateway Development Commission awarded the USD 1.29 billion Package 1C contract to the Traylor, Walsh and Skanska joint venture, covering the section beneath the Hudson River between New Jersey and Manhattan. Early works are underway, including ground stabilisation, shaft construction and preparation for tunnel boring, with TBMs arriving on site for assembly during 2026. The project represents one of the most labour-intensive rail tunnelling programmes currently underway in North America.
Fehmarnbelt Fixed Link, Denmark and Germany
The Fehmarnbelt Fixed Link has entered full construction following the successful immersion of its first tunnel element in early May 2026. This milestone marks the transition from preparatory works into serial installation of the immersed tunnel elements. With 88 further elements to be installed over the coming years, the project will sustain high demand for marine engineers, structural specialists, quality engineers and logistics professionals. It is currently the most advanced example of large-scale immersed tunnelling in Europe.
Lower Thames Crossing, United Kingdom
In the UK, the Lower Thames Crossing has progressed into its early construction phase following the award of the tunnelling and approaches contract to the Bouygues Travaux Publics and Murphy joint venture. The project includes the UK’s longest road tunnels, running beneath the Thames between Kent and Essex. Detailed design and enabling works are ongoing ahead of full tunnel excavation, with the scheme expected to support thousands of construction and engineering jobs once main works accelerate.
Yonge North Subway Extension, Canada
The Yonge North Subway Extension in the Greater Toronto Area has moved into early-stage construction following the award of a CAD 1.4 billion advance tunnelling contract to the North End Connectors consortium. Early works include shaft construction, utility diversions and procurement of tunnel boring machines, with major tunnelling activities scheduled to ramp up as designs are finalised. The project is a key driver of tunnelling employment growth in Canada.
Dublin MetroLink, Ireland
Ireland’s largest-ever transport infrastructure project, Dublin MetroLink, has received statutory approval and entered the procurement and enabling works phase. Early construction activities are scheduled to begin in 2026, including site preparation and utility relocation, ahead of TBM-driven tunnelling beneath central Dublin. The project is expected to generate sustained demand for underground construction expertise over the next decade.
What This Means
For job seekers, the latest updates reinforce tunnelling as a resilient and globally mobile sector within civil engineering. Experience gained on projects like Hudson or Fehmarnbelt can open doors to future megaprojects in rail, metro and utility infrastructure worldwide. For employers, competition for experienced tunnelling professionals is likely to intensify, increasing the importance of training pipelines and international recruitment.
At a wider economic level, sustained investment in tunnelling supports not only direct construction jobs but also supply chains in precast manufacturing, heavy plant, digital systems and specialist consultancy. These projects underline how long-term infrastructure spending continues to act as a stabiliser for engineering employment during uncertain economic conditions.
To Learn More
For further coverage of major infrastructure and engineering employment trends, see related articles on Sustina, including:
Source Material
- Skanska USA, Traylor/Walsh/Skanska Joint Venture Awarded Hudson Tunnel Project Package 1C: Hudson River Tunnel Section Contract for USD 1.29B, Press Release, 4 May 2026. Available at: https://www.usa.skanska.com/who-we-are/media/press-releases/306534/TraylorWalshSkanska-Joint-Venture-awarded-Hudson-Tunnel-Project-Package-1C-Hudson-River-Tunnel-Section-Contract-for-1.29B [usa.skanska.com]
- Femern A/S, The First Element of the Fehmarnbelt Tunnel Successfully Immersed, Press Release, 7 May 2026. Available at: https://femern.com/press/news/the-first-element-of-the-fehmarnbelt-tunnel-successfully-immersed/ [femern.com]
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