Amtrak and Penn Transformation Partners (PTP) have finalised a pre-development agreement (PDA) as part of ongoing plans to redevelop New York Penn Station.
This agreement lays the groundwork for the redevelopment and modernisation Penn Station, the nation’s busiest rail hub, which serves more than 600,000 commuters and visitors each day.
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PTP, a joint venture between Halmar and Skanska, has been named Master Developer for the project.
The PDA will enable Amtrak and PTP to complete the design phase, gather input from stakeholders and the public, and determine a final fixed price for the construction work.
The pre-development activities are expected to begin in June 2026 and continue through the end of 2027, with construction anticipated to commence later that year.
The redevelopment aims to deliver a modern, accessible Penn Station. Plans include a single-level concourse with consolidated amenities, restaurants, bars, shops and customer services on one floor.
The design will feature higher ceilings, a new entrance on Eighth Avenue, removal of the Infosys Theater, and an art deco facade.
Madison Square Garden will remain in operation throughout construction, and the surrounding streets and sidewalks will be renovated to improve the pedestrian experience.
Additional project elements involve expanded track capacity, removal of columns at the platform level, enhanced lighting and signage, and new passenger pick-up and drop-off locations.
Amtrak special advisor Andy Byford said: “The momentum continues to transform New York Penn Station, and having a renowned partner in PTP officially on board ensures the project will progress even further and faster while maintaining our record of meeting all deadlines on schedule.”
PTP CEO Peter Cipriano said: “This agreement is another major step toward reimagining Penn Station as the transit hub that travellers, visitors, and New Yorkers have long deserved.
“Now, we will move forward as quickly and efficiently as possible to advance the design, establish a clear path to construction, and ensure the station reflects the needs of riders and the community.
The cost of the transformation is estimated at between $7bn and $8bn, with the final amount to be determined during the PDA phase.
Funding is expected to come primarily from federal grants, private financing and PTP’s equity.
No fare increases or surcharges are planned for NJ TRANSIT, MTA or Amtrak passengers to support the project.
To date, the US Department of Transportation has contributed $243m towards early works, and is investing nearly $5bn to renew the Northeast Rail Corridor, which includes Penn Station.
The station’s redevelopment will be delivered using a design-build-finance-operate-maintain model.
The construction will be fully unionised, with Halmar and Skanska sharing development and construction responsibilities.
Throughout the PDA phase, community engagement will remain a focus, offering opportunities for public comment and input from the Penn Station Working Advisory Group, which includes representatives from more than 50 local organisations.
