New York Construction Report staff writer
Amtrak and Penn Transformation Partners have finalized a pre-development agreement for the overhaul of New York’s Penn Station, clearing the way for design work and public engagement ahead of construction, which is expected to begin by the end of 2027.
The agreement launches the next phase of the estimated $7 billion to $8 billion project to transform the nation’s busiest rail hub into a modern, fully accessible station serving about 600,000 daily commuters and millions of visitors each year.
Halmar and Skanska are 50-50 development partners and 45-55 construction partners on the project. The project will be 100 percent union-built.
Under the agreement, Amtrak, led by Special Advisor Andy Byford, and Penn Transformation Partners — a joint venture led by Halmar and Skanska — will complete the station’s design, gather input from stakeholders and the public, and establish a firm, fixed construction price before work begins.
The pre-development phase will run from summer 2026 through 2027.
“The momentum continues to transform New York Penn Station, and having a renowned partner in PTP officially onboard ensures the project will progress even further and faster while maintaining our record of meeting all deadlines on schedule,” Byford said.
Since 2024, the Penn Station Working Advisory Group, made up of more than 50 organizations representing community groups, transit riders, elected officials and commuter rail agencies, has advised the project. Officials said the pre-development phase will include extensive public outreach before a final design is completed.
“This agreement is another major step toward reimagining Penn Station as the transit hub that travelers, visitors and New Yorkers have long deserved,” said Peter Cipriano, chief executive officer of Penn Transformation Partners. “We look forward to delivering a new Penn Station that will become a civic landmark and transit hub that is safer, more spacious and better equipped to serve the growing needs of this region.”
Final construction cost will be determined during the pre-development phase. They said cost controls include a cap on pre-development spending and a competitive procurement process designed to establish a fixed construction price before work begins.
The new Penn Station will feature a single-level concourse of stone and bronze with soaring ceilings, and all public activity, including amenities, bars, restaurants, shops, and customer services, will be consolidated on one floor.
Madison Square Garden will remain in place, and throughout construction, the arena and all railroads will continue to operate. The plan also includes new entry points and passenger pick-up and drop-off locations, the elimination of loading and unloading at 31st Street and 8th Avenue, and the beautification of the surrounding streets and sidewalks to improve the pedestrian experience.
Work includes:
- Constructing a grand entrance on 8th Avenue to the new train hall by removing the Infosys Theater and building a classic New York art deco façade dedicated exclusively to the station
- Transforming cramped, decrepit walkways with open, beautiful concourses
- Expanding track capacity, including the introduction of at least limited through-running on the regional rail network
- Enabling new retail spaces
- Upgrading the station’s existing subterranean structure by removing scores of columns at the track and platform level and improving lighting, signage, and passenger circulation
For more information about the redevelopment of Amtrak’s Penn Station, visit www.penntransformation.com.
