Anthony Coscia, chairman of the Port Authority of New York and New Jersey, told Reuters in a recent interview that the project, known as "Access to the Region's Core," or ARC, should be considered ahead of a slate of billions of dollars worth of other transportation projects competing for limited government funds.

That includes proposals for a 2nd Ave. subway, east-side rail access from Long Island to Grand Central Terminal, a freight tunnel under New York's harbor, and a direct link to lower Manhattan from John F. Kennedy International Airport, Coscia said.

"Those are all major infrastructure projects that are existing gaps in our current infrastructure," he said.

"But the one that puts us in the greatest jeopardy if we don't do something about it, from a quality-of-life standpoint, from an economic standpoint and from a security standpoint, is the Access to the Region's Core."

ARC, a bold project that has been likened in scale to the Chunnel between France and England, would create a new two-track commuter rail tunnel under the Hudson River between New York and New Jersey. Currently in the preliminary environmental-impact study stage, ARC would also create supporting rail facilities and new capacity at Penn Station.

"In terms of funding, it's being considered, but there are not the kind of substantial commitments there should be," Coscia said.

"I feel strongly that the Port Authority should make a very substantial commitment to it, because in many ways it's our future," he said.

New Jersey riders would no doubt benefit from the doubled tunnel capacity. But about 12 percent of passengers who cross the Hudson River on trains through New Jersey are commuters from New York counties, traveling via a tunnel that was built in 1910, Coscia said.

"There's no way that even the boldest of planners in 1910 could have envisioned the kind of demand we have in 2004," he said.

Moreover, the Port Authority's three principal crossings between the two states -- the George Washington Bridge, and the Lincoln and Holland Tunnels, were built decades ago and require many millions of dollars to maintain, partly due to heavy usage, Coscia said.

Three times as many riders cross the Hudson River in buses than by train, he said.

The ARC project would also create an extension for Penn Station, which is already bursting at the seams.

"To build more capacity at Penn Station, we're literally dropping floors from the ceiling to create more floor space," Coscia said.

The litmus test for government when deciding where to spend its transportation dollars should be what will have the greatest impact on the region, he said.

"I don't think you can make a case for any of these other projects that rivals the case you can make for the ARC project."