NEW YORK CITY-While it is certainly not the ARC project, Related Cos. and Amtrak have agreed to build the first link of what they hope will eventually be a rail tunnel linking New Jersey and Manhattan.

Work is expected to begin this summer on the “box tunnel” that will not be designed to carry trains at the outset, but will serve as a shell for the Manhattan end of the Gateway tunnel Amtrak hopes to build later, according to the New York Post. The 800-foot long tunnel to be funded by the federal government is to be built under the Hudson Yards site. Construction has begun on the property for a 900-foot office tower that will be the headquarters for Coach Inc.

The box will hold the space for a rail link between the future Hudson tunnel and existing tracks at Penn Station, as well as for the proposed Moynihan Station. Amtrak will pay for the project, estimated to cost from $120 million to $150 million, from funds it will receive through the Federal Transit Administration. See story in the New York Post.