Penn Station, the busiest U.S. train station that’s often described as an eyesore, is set for a major makeover, with the Trump administration announcing that it has selected a team to lead the work.
Penn Transformation Partners, led by construction firms Halmar and Skanska, has been picked as the private master developer to transform the rail gateway in the largest U.S. city, Transportation Secretary Sean Duffy and Amtrak’s board of directors said Wednesday in a statement. Groundbreaking is expected by the end of 2027.
The Department of Transportation and Amtrak took control of the Penn Station overhaul from the New York Metropolitan Transportation Authority and the state last year.
Halmar is owned by ASTM North America, part of Italy-based global developer ASTM, one of the world’s largest toll road operators and developers of public-private partnership infrastructure projects.
ASTM in 2023 submitted a design proposal for Penn Station that would keep the famed sports and entertainment venue Madison Square Garden in place and surround it in stone.
The plan announced Wednesday would also keep the famed venue where it is, but add “new cladding for a classical look,” according to the team.
Other plans for the station include building a grand entrance on Eighth Avenue leading to a new train hall; replacing cramped walkways with open concourses; expanding track capacity; and adding new retail and improved wayfinding.
Vornado Realty Trust, which has its Penn District office and retail portfolio surrounding Penn Station, is the commercial development partner in the project.
“We took over the transformation of New York Penn Station because the project was behind schedule, over budget, and hopelessly mismanaged. One year later, we continue to hit major milestones at record speed,” Duffy said. “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 at a Senate hearing this week that the federal government plans to spend about $8 billion on the overhaul, according to media reports.