Federal officials and Amtrak have named a developer team for Penn Station transformation. This is reported by the railway transport news portal Railway Supply.

New York Penn Station redevelopment moves to next stage
Photo: Amtrak

Halmar and Skanska are working together as Penn Transformation Partners. They were selected as the master developers for the redevelopment. Also, the plan keeps Madison Square Garden in place. It does not require demolishing the Hulu Theater.

In addition, the project will include a new Eighth Avenue entrance. It will lead into a train hall. The work will also include new concourses, expanded track capacity and other changes.

Penn Station transformation scope

Only limited details about the selected proposal have been released so far. Still, Amtrak said the plan would create a grand Eighth Avenue entrance. It would serve a new train hall. It would replace the station’s narrow pedestrian areas with open concourses. The plan would also give Madison Square Garden a more classical appearance. It would improve the existing underground structure.

Also, the selected team includes Halmar. Its parent company, ASTM, had earlier presented a new Eighth Avenue façade and entrance plan. The MTA did not consider that concept when it still led the redevelopment process.

As NY1 reported, two other proposals were also in the running. One came from Penn Forward Now. Its plans were never publicly released. The other came from Grand Penn Partners. That group was backed by a donor to President Donald Trump.

The Grand Penn Partners concept included relocating Madison Square Garden. It used a neo-classical design style favored by the president.

Track capacity plan

According to Amtrak, the selected proposal also includes measures to expand track capacity. For example, one element is limited through-running on the regional rail network. Trains would continue beyond Penn Station to other stops with passengers. They would not terminate at Penn Station. Neither NJ Transit nor the MTA currently operates that way.

Federal role and project oversight

The federal government assumed control of the redevelopment from the MTA in April of last year. In addition, former New York City Transit President Andy Byford was appointed to oversee the effort. It placed the redevelopment under federal oversight before Amtrak announced the developer selection.

MTA Chair and CEO Janno Lieber responded to the announcement with questions. They focused on the deal structure.

“One of the first questions is, what are the financial commitments being made by a proposed developer? What equity are they putting on the table?”

Lieber also pointed to delivery and compensation issues tied to the public-private model.

“What are the standards in terms of delivery or schedule commitments that are being made that their compensation is contingent on? Those are all features of the standard P3, so those are the kinds of questions we’re asking, and of course, we don’t know what the design looks like at all, so we’re finding out just as you are,”

The redevelopment is planned as a public-private partnership. Under that structure, the developer would help finance the project. It would recover costs through retail rights. Separately, U.S. Transportation Secretary Sean Duffy addressed federal funding in a Senate hearing. He said the federal government would put significant money into the project.

“When it comes to our rail, we’re making generational improvements to the Northeast Corridor. That means…a transformative investment in New York’s Penn Station — $8 billion, by the way,”

Contract finalization and next step

In a statement Wednesday, Duffy said the selection brings the project closer to delivery.

“In selecting Penn Transformation Partners (Halmar) and their innovative plan, we are one step closer to delivering a world-class travel hub that daily commuters and travelers have dreamed of for decades.”

MSG Entertainment also issued a statement after the decision.

“We congratulate Penn Transformation Partners on being selected to redevelop Penn Station following Amtrak’s process and look forward to working with all parties as their plan advances toward a new Penn Station.”

Meanwhile, Amtrak said it is now finalizing the contract. The agency expects work to begin before the end of 2027.

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