The New Jersey Transit Corporation (NJ Transit) is proposing to construct a second Minimum Operable Segment (MOS-2) for the Hudson-Bergen Waterfront Light Rail Transit (LRT) System. The proposed MOS-2 would run north from Hoboken Terminal to the Tonnelle Avenue Park-and-Ride in North Bergen and south from 34^th Street to 22^nd Street in Bayonne. The total cost of MOS-2 is estimated at $989.32 million (escalated dollars), including borrowing costs. MOS-2, like the initial Minimum Operable Segment (MOS-1) now nearing completion, would be a design/build/operate/maintain project. NJ Transit is seeking $622.35 million (escalated dollars) in Section 5309 New Starts funds. With completion of the second phase of the Hudson-Bergen LRT, NJ Transit expects the system to become self-sufficient and not require any operating subsidies.

The full Hudson-Bergen LRT is a $2.0 billion (escalated dollars), 20.1-mile, 30 station at-grade LRT line from the Vince Lombardi Park-and-Ride lot in Bergen County to West Fifth Street in Bayonne in Hudson County. It will carry 94,500 passengers daily. When completed, the project will pass through Port Imperial in Weehauken, Hoboken and Jersey City. The outer ends will provide 8,800 park-and-ride spaces. The core of the system will serve the high density commercial and residential centers in Jersey City and Hoboken and connect to ferries, PATH, and NJ Transit commuter rail lines.

The 9.6-mile MOS-1, currently under construction, will connect the Hoboken Terminal to 34th Street Bayonne and Westside Avenue in Jersey City. MOS-1 is expected to cost $992.14 million (escalated dollars) and to carry 31,300 riders per day. The revenue operation date is scheduled for July 2000.

The Final Environmental Impact Statement for the full Hudson-Bergen Waterfront LRT was issued in August 1996. The Federal Transit Administration (FTA) issued a Record of Decision in October 1996. Later the same month, FTA signed an FFGA committing $604.09 million of Section 5309 New Start funds to support the 9.6-mile MOS-1. The Hudson-Bergen LRT project is one of eight elements eligible for funding as part of the New Jersey Urban Core Project. Through FY 1999, Congress has appropriated $228.31 million in Section 5309 New Starts funds to the Hudson-Bergen MOS-1.

In January 1997, the Governor of New Jersey, in conjunction with the Mayor and City Council of Hoboken, agreed to alter the alignment of the Hudson-Bergen LRT in Hoboken to the west side of the city. An Environmental Assessment (EA) was completed on this re-alignment and was submitted to FTA in August 1998. Public review of the EA is expected to be completed in February 1999.