Penn Station’s overhaul took a big step forward on Wednesday. The U.S. Department of Transportation and Amtrak announced the selection of Penn Transformation Partners, a team led by Halmar International and Skanska, as the master developer of the project following a bidding process. The developer will build a “brand-new world-class station,” according to an announcement on Wednesday, with open concourses and expanded track capacity, while keeping Madison Square Garden in its current location. The news comes a day after Transportation Secretary Duffy announced the federal government would spend $8 billion to rebuild Penn Station.
Few details were in the announcement put out on Wednesday, but a press release said the redesign from Penn Transformation Partners will include a grand entrance on Eighth Avenue, “open, beautiful concourses” replacing the current cramped walkways, and passenger experience improvements, like new retail and better wayfinding.
The design will also expand track capacity, including possibly through-running on the regional rail network to increase efficiency.
The new design will take inspiration from the original Penn Station, a Beaux-Arts building designed by McKim, Mead & White in 1910 and demolished in the 1960s.
“The new design takes inspiration from this lost architectural gem while fitting with the major structures there currently, particularly Madison Square Garden and Moynihan Train Hall,” the press release states.
“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,” Duffy said. “Under President Trump’s historic leadership, the days of Penn Station’s cramped hallways, broken infrastructure, and snarled rail lines are numbered. 2027 can’t come soon enough.”
Halmar International is the construction arm of ASTM Group, which released a proposal to rebuild Penn in 2023. In that design from the architects at Practice for Architecture and Urbanism (PAU) and HOK, two main train halls would be accessible by a new entrance on Eighth Avenue. The new entrance, which replaces the existing Hulu Theater, would have soaring 55-foot-high ceilings and a glass-wrapped mid-block hall with large windows and skylights.
The design also called for keeping MSG in place and wrapping it in a massive stone facade reminiscent of the McKim, Mead & White-designed Moynihan Train Hall across the street on Eighth Avenue, as 6sqft previously reported.
The project team includes Skaska, HNTB New York Engineering, Vornado, Severud Associates, and Langan.
The exact cost has not been announced, but Duffy told Sen. Kirsten Gillibrand during a Senate hearing on Tuesday that the government is “going to give $8 billion to rebuild Penn Station.” Duffy said the Federal Railroad Administrator (FRA) will also provide $200 million in additional funding for the project through the Partnership-Northeast Corridor Program.
“FRA is investing $200 million to support critical design and permitting work on the New York Penn Transformation. The new station will be an architectural icon that fuels further development in the Nation’s financial capital while accommodating more passengers during critical rush periods,” FRA Administrator David Fink said.
The funding allows work to begin before the end of 2027, according to Amtrak and U.S. DOT.
Hochul, who pitched President Trump on funding the project last year, said she plans to “thoroughly review” the proposal.
“To be successful, this project must accomplish two things: dramatically improve the experience for every rider who passes through Penn Station, from the A train to the Acela, while protecting the record performance of the LIRR and ensuring the costs are not borne by New York commuters or taxpayers,” Hochul said in a statement. “I will accept nothing less.”
Last year, the federal government ousted the MTA from the project and gave it to Amtrak to take over. The agency had come up with its own plan to replace Penn Station with a single-level facility, but progress was delayed for years.
Another plan that was not chosen, “Grand Penn,” called for recreating the original station and relocating MSG across the street.
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- Private firm unveils Penn Station redesign plan, claims it’s $1B cheaper than MTA’s
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