New York Penn Station modernization enters next phase

New York Penn Station modernization is moving ahead. The U.S. Department of Transportation selected a joint venture led by Aecom. It is working in partnership with LiRo-Hill. As Railway Supply reported, the team will provide management services. The work covers the station’s modernization and development.

Under the contract, the Aecom–LiRo NYPennT joint venture will work with Amtrak. It will also work with the selected lead developer. Together, they will support the broader transformation of Penn Station in New York. Also, the stated goals are to improve safety, operational efficiency, and traffic capacity. They also include a more modern passenger experience.

Secretary of Transportation Sean P. Duffy announced the latest update. Amtrak Special Advisor Andy Byford did so as well. Meanwhile, Amtrak outlined new milestones for the station redevelopment effort.

New York Penn Station modernization and project scope

The parties also selected the consortium. They also decided that NJ Transit would be involved in the project. NJ Transit is New Jersey’s public transit operator. In addition, preliminary work will begin on environmental procedures. It will also include a service optimization study with the Federal Railroad Administration (FRA).

A progress review was also held on the Penn Station redevelopment in New York. Separately, Amtrak will meet with each potential lead developer. Those meetings will cover design proposals.

Don’t miss…Connecticut transportation projects plan outlines $5.5B

“This new step forward with USDOT reflects our commitment to keeping the project on schedule and ensuring transparency in its implementation. Enthusiasm is growing with every milestone, and we are ready to keep up the momentum until we deliver a world-class station in the heart of New York,” said Andy Byford.

Lead developer selection and project timeline

Milestones have already been set out for the Penn Station transformation project in New York. In April 2025, USDOT and Amtrak took control of the station modernization. They withdrew $72 million in funding from the New York Metropolitan Transportation Authority (MTA). Meanwhile, in August 2025, USDOT announced a $43 million federal grant to begin preparatory work.

In September 2025, USDOT also took over management of Union Station in Washington, D.C. In October 2025, the process of selecting the lead developer was launched. At the same time, technical, financial, and legal advisers were appointed.

In January 2026, three finalist teams were selected for the lead developer role. They were Penn Forward Now (Fengate), Penn Transformation Partners (Halmar), and Grand Penn Partners (Macquarie).

The final selection is scheduled for May 2026. Still, design work is set to run from the summer of 2026. It is set to continue through the end of 2027. Environmental assessments are set to run during that period as well. Construction is also expected to begin then. According to the plans, building work is expected to start by the end of 2027.

Capacity, safety, and passenger access at Penn Station

USDOT and Amtrak also made a joint commitment to accelerate the station’s reconstruction and modernization. The plan is aimed at turning it into a modern and efficient transportation hub.

Priorities include renovating and modernizing the existing infrastructure. They also include expanding transit space capacity. In addition, the plan calls for better passenger access. That is meant to help manage flows through the station more effectively.

The project also aims to increase safety and operational efficiency. It is meant to adapt the infrastructure to an ever-increasing volume of rail traffic. It is also meant to provide a world-class experience for users.

New York’s Penn Station is the busiest train station in the western United States. More than 13 million intercity train passengers used the station in fiscal year 2025. Also, around 450 Amtrak trains use the station every day. The operator generates more than one billion USD in ticket revenue.

In addition, the station accounts for more than 45% of NEC travel. The NEC is the Northeast Corridor. It also handles more than 200,000 commuter trips.

News on railway transport, industry, and railway technologies from Railway Supply that you might have missed: