Amtrak and Penn Transformation Partners (PTP) have signed a Pre-Development Agreement (PDA) to advance plans to redevelop New York Penn Station. This marks the next stage in a project aimed at modernising one of the US’s busiest transport hubs.
The agreement establishes a framework for a public-private partnership that will allow Amtrak and PTP to finalise the station’s design, engage with stakeholders and determine a fixed construction cost before major works begin. Construction is currently expected to start by the end of 2027.
Penn Transformation Partners is a joint venture led by Halmar and Skanska. During the PDA phase, which is scheduled to run from summer 2026 through 2027, the partners will work with Amtrak and local stakeholders to refine project plans and gather public feedback.
The redevelopment programme is intended to create a more accessible and spacious station, while improving passenger circulation and customer facilities. Input from the Penn Station Working Advisory Group, which includes more than 50 organisations representing community groups, transport users, elected officials and rail agencies, will continue to inform the design process.
Andy Byford, Special Advisor to Amtrak for the Penn Station project, said: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. New Yorkers just experienced a Knicks championship right above the station and we are committed to giving them something to be equally proud of within the same building where a banner will be raised.
The redevelopment is currently estimated to cost between 7 billion USD and 8 billion USD, with the final figure to be established during the PDA phase. The project will be funded through a combination of federal funding, private financing and equity provided by PTP.
Amtrak has stated that no fare increases or surcharges will be imposed on passengers using services operated by Amtrak, NJ TRANSIT or the Metropolitan Transportation Authority (MTA) to fund the project.
The U.S. Department of Transportation has already committed 243 million USD to support early project development. The department is also investing nearly 5 billion USD across Amtrak’s Northeast Corridor infrastructure programme, which includes improvements to major rail facilities such as Penn Station.
Peter Cipriano, Chief Executive Officer of Penn Transformation Partners, 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. 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 for decades to come.
Plans for the redeveloped station include a single-level public concourse finished with stone and bronze, featuring higher ceilings and consolidated passenger amenities. Retail outlets, restaurants, customer services and waiting areas would all be located on the same level.
A new entrance on Eighth Avenue is also proposed, replacing the existing Infosys Theater with a station frontage inspired by New York’s art deco architectural heritage. The project would additionally introduce new passenger pick-up and drop-off points, improve surrounding streets and pavements, and remove loading and unloading activity from 31st Street and Eighth Avenue.
Further planned improvements include wider concourses, upgraded wayfinding systems, enhanced lighting and structural modifications at platform level aimed at improving passenger movement through the station.
The scheme also includes proposals to increase rail capacity and support limited through-running of regional rail services. Madison Square Garden will remain in place throughout the redevelopment, while rail services and arena operations are expected to continue during construction.
