Penn Station transformation plans have moved into a pre-development agreement between Amtrak and Penn Transformation Partners for the planned overhaul of New York Penn Station.

Amtrak advances Penn Station transformation deal
Photo: Penn Transformation Partners

Penn Station transformation moves into PDA phase

The agreement⁠ sets the framework for Amtrak Special Advisor Andy Byford and Penn Transformation Partners, a joint venture led by Halmar and Skanska, to move ahead with the next stage of the station programme. During this phase, the parties will finalize the project design, collect stakeholder input and set a firm price for delivering the transformation, according to Amtrak officials.

The pre-development agreement phase is scheduled to run through 2027. The overall project is now estimated at $7 billion to $8 billion. Byford has said no fare increases or surcharges will be passed on to New Jersey Transit, Metropolitan Transportation Authority or Amtrak riders to pay for the project. Amtrak officials said the project will be paid for mainly through federal funding, private financing and equity raised by Penn Transformation Partners.

New York Penn Station overhaul scope

The Penn Station Transformation project includes a grand entrance on Eighth Avenue leading to a new train hall. That part of the plan calls for removing the Infosys Theater and building a new facade. The scope also includes turning walkways into open concourses, expanding track capacity, adding retail space and upgrading the station’s existing subterranean structure.

The PDA phase fits into an official project schedule that placed preliminary design and National Environmental Policy Act activities between summer 2026 and the end of 2027, with construction initiation targeted for the end of 2027. Amtrak has also described New York Penn Station as a hub handling more than 1,000 daily train movements across 21 tracks, which explains why the project scope covers concourses, track capacity and the station’s subterranean structure. In the latest agreement, Amtrak said PDA phase costs are capped before the final construction price is locked in, while USDOT has invested $243 million to support early project stages.

“The PDA] is another major step toward reimagining Penn Station as the transit hub that travelers, visitors and New Yorkers have long deserved,” said Peter Cipriano, CEO of Penn Transformation Partners. “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.”