NEW YORK (BLOOMBERG) — The entities transforming New York’s Penn Station are slated to learn how much federal money will be directed to the project in about six months, according to Peter Cipriano, chief executive officer of the Halmar-Skanska consortium, the renovation’s master developer.
Cipriano and Andy Byford, special advisor to Amtrak’s board who is overseeing the rehabilitation, gave updates to reporters on Monday about the efforts to revamp the busiest rail hub in the western hemisphere. It will cost about $7 billion, and construction is expected to start by the end of 2027 and finish in six years.
Byford said the project will ask for the maximum in terms of federal grants and loans. New York, New Jersey and New York City will also need to chip in, since their residents and commuter-rail lines will benefit from the rehabilitation, he said.
“There are various sources from which we can apply,” he said. “So I’m looking for billions from the federal government to contribute to that capital stack.”
The renovation involves adding train capacity, widening hallways, bringing in natural light and expanding the concourse. The hub serves more than 600,000 daily passengers on Amtrak, New Jersey Transit, the Long Island Rail Road and six subway lines.
Amtrak, which owns the station, last month picked Halmar and Skanska, a co-venture called the Penn Transformation Partners, to serve as the master developer.
The Halmar-Skanska proposal keeps Madison Square Garden, home of the New York Knicks basketball team, above Penn Station. It also creates a new major entrance on Manhattan’s Eighth Avenue. The Federal Railroad Administration is studying whether the station can accommodate train service called “through running” that would allow New Jersey Transit to provide service east of Penn Station rather than disembarking all trains at the hub.
