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New York governor Andrew Cuomo has revealed plans to launch a tender process to transform Penn Station in Manhattan into a new transportation hub, the Empire Station Complex, through the PPP model.

Under the planned project, the preferred bidder will widen existing corridors, reconfiguring ticketing and waiting areas, improve connectivity between the lower levels and street level, bring natural light into the facility, improve signage. and expand and upgrade the retail offerings and passenger amenities on all levels of the station.

Additionally, the Farley Post Office will be redeveloped into a train hall for Amtrak, with services for passengers of the Long Island Rail Road, New Jersey Transit and the new Air Train to LaGuardia Airport. The train hall will be connected to Penn Station via an underground pedestrian concourse, and increase the station’s size by 50%. At 210,000 ft2. The new facility will offer more concourse and circulation space, include retail space and modern amenities

The total project investment is estimated at US$3 billion, including $2 billion to redevelop Farley and Penn into a world-class transportation hub and at least $1 billion for ancillary retail and commercial developments between 7th and 9th avenues. 

The private partner selected through a PPP procurement model will get revenues from exploting the commercial developments.

Penn Station, is the main intercity railroad station in New York City. Serving more than 650,000 passengers every day, it is the busiest passenger transportation facility in North America. Penn Station is in the midtown area of Manhattan, close to Herald Square, the Empire State Building. It currently has 21 tracks fed by seven tunnels and it is at the center of the Northeast Corridor, a passenger rail line that connects New York City with Boston, Philadelphia, Washington, D.C., and intermediate points.

Intercity trains are operated by Amtrak, which owns Penn Station, while commuter rail services are operated by the Long Island Rail Road (LIRR) and New Jersey Transit. Connections are available within the complex to the New York City Subway, and buses.

Andrew Cuomo said:

“Penn Station is the heart of New York’s economy and transportation network, but it has been outdated, overcrowded, and unworthy of the Empire State for far too long. We want to build Penn Station to be better than it ever was, and that is exactly what we are going to do. This proposal will fundamentally transform Penn Station for the 21st century, and we are excited to move forward with the project in the days to come.”

Amtrak President and CEO Joseph Boardman said: 

“Amtrak appreciates Governor Cuomo’s leadership, vision and commitment to the expansion of passenger rail capacity here in New York. We’re proud to work closely with the Governor, the Empire State Development Corporation and others on his team to help lead a rail renaissance in Manhattan. With the development of Moynihan station as Amtrak’s new intercity train hall and the pursuit of Penn Station improvements for the hundreds of thousands of daily commuters that use our facility, we are setting the stage for the future expansion of rail service and ridership that will be made possible by the Gateway Program.”

Senator Brad Hoylman said: 

"Under Governor Cuomo’s ambitious proposal to transform Moynihan Station into a modern transportation hub, no longer will commuters have to scuttle into our great city like rats, as the Yale architectural critic Vincent Scully memorably wrote after the demolition of the old Penn Station in 1963. Not only will the Governor’s plan correct this historic wrong and create a train station worthy of the city it serves, but a new Moynihan Station will be a key driver for economic development in the entire Metro Region. I thank Governor Cuomo for his bold vision to redevelop Moynihan and look forward to working with him to make it a reality."

Senator Adriano Espaillat said: 

"Penn Station is in dire need of a complete overhaul and Governor Andrew Cuomo's plan to remake this vital terminal into a 21st century transportation hub is the right approach. I look forward to working with the Governor to bring a better experience to the hundreds of thousands of New Yorkers who use Penn Station every day. I am very pleased to see this important protect get on the right track."

Assembly Member Richard N. Gottfried: 

“I welcome Governor Cuomo’s effort to get the project moving again. The redevelopment of Penn Station and Moynihan is extraordinarily complex, both physically and organizationally. It will have substantial impact on the surrounding area, including pedestrian and vehicle traffic and land use. In addition to all the on-site transportation entities, it is crucial that the surrounding community and the City be actively involved in the planning.”