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Under the contract, 21st Century Rail would deliver a fleet of vehicles, a guaranteed completion date, and 15 years of operation and maintenance of the system, for a fixed price. In 1996, New Jersey Transit awarded a "DBOM" (design/build/operate/maintain) contract to the 21st Century Rail Corporation, a subsidiary of Washington Group International, an engineering and construction consulting firm later acquired by URS, then AECOM.

The design, construction, operation, and maintenance of the system is part of a public-private partnership. After extensive studies, it was decided that the most efficient and cost-effective system to meet the growing demands of the area would be a light rail system, constructed in several phases. During the 1980s and early 1990s, planners and government officials realized that alternative transportation systems needed to be put in place to relieve increasing congestion along the Hudson Waterfront, particularly in the vicinity of the Hudson River crossings. and has one of America's highest percentages of public transportation use. Hudson County, New Jersey, is the sixth most densely populated county in the U.S. 7 Transit-oriented development and urban revitalization.The system is a component of the state's " smart growth" strategy to reduce auto-ridership and to revitalize older urban and suburban areas through transit-oriented development. With an eventual overall cost of approximately $2.2 billion to complete its initial operating segments, the Hudson–Bergen Light Rail was one of the largest ever public works projects in New Jersey. The project was financed by a mixture of state and federal funding.

There are plans for expansion through extensions and additional stations. HBLR has 24 stations along a total track length of 17 miles (27 km) for each of its two tracks and as of 2017 serves over 52,000 weekday passengers.

The line generally runs parallel to the Hudson River and Upper New York Bay, while its northern end and its western branch travel through the lower Hudson Palisades. The system began operating its first segment in April 2000, expanded in phases during the next decade, and was completed with the opening of its southern terminus on January 31, 2011. Owned by New Jersey Transit (NJT) and operated by the 21st Century Rail Corporation, it connects the communities of Bayonne, Jersey City, Hoboken, Weehawken, Union City (at the city line with West New York), and North Bergen. The Hudson–Bergen Light Rail ( HBLR) is a light rail system in Hudson County, New Jersey, United States.