Amtrak & USDOT: Penn Station Transformation, Rail Expansion in the US

Introduction

The U.S. Department of Transportation (USDOT), in collaboration with Amtrak, has achieved three significant milestones in the New York Penn Station Transformation project, with construction slated to commence by the end of 2027.

Project Milestones

The first milestone involves the release of the solicitation for the transformation project’s master developer, with interested parties invited to submit their Letters of Interest via Amtrak’s Procurement Portal. The second milestone is the selection of advisors to assist in structuring the project approach and agreements. Hunton Andrews Kurth will serve as the Legal Advisor, KPMG as the Financial Advisor, and AKRF as the project’s environmental consultant. The third milestone is the initiation of the project’s Service Optimisation Study, designed to identify methods to accommodate passenger service expansion at New York Penn Station and the surrounding region.

Advisory Roles and Objectives

The appointed advisors will contribute to transforming the busiest train station in the Western Hemisphere into a world-class transit hub. Their responsibilities include developing a strategy to attract private investment, expedite approvals, and evaluate innovative solutions. They will also identify funding opportunities, maximize revenue potential, and proactively manage risks to keep the infrastructure project on schedule and within budget.

Financial and Operational Insights

According to Andy Byford, Special Advisor to the Amtrak Board, the collaboration with the private sector will enable them to engage with advisors focused on achieving the project’s objectives while minimizing costs for taxpayers. In Fiscal Year 2024, New York Penn Station accommodated over 12 million passengers. This represents nearly 18% of the total Amtrak ridership and almost 45% of Northeast Corridor ridership. The station facilitates over 1,000 daily train movements, involving Amtrak, NJ Transit, and Long Island Rail Road, across 21 tracks.

Recent Developments

In April, USDOT and Amtrak assumed control of the Penn Station overhaul from the New York Metropolitan Transportation Authority (MTA). Concurrent with this announcement, USDOT withdrew USD 72 million in grant funding.

Conclusion

The U.S. Department of Transportation (USDOT) and Amtrak have reached key milestones for the New York Penn Station Transformation project. These include the release of a solicitation for a master developer, the selection of project advisors, and the initiation of a service optimization study. These efforts are aimed at transforming the station into a modern transit hub, with construction planned to begin by the end of 2027.

Company Summary

Amtrak: Amtrak is a passenger railroad service in the United States, operating intercity services in 46 of the 48 contiguous states and parts of Canada.

Hunton Andrews Kurth: Hunton Andrews Kurth is a law firm.

KPMG: KPMG is a financial services company.

AKRF: AKRF is an environmental consultant.

NJ Transit: NJ Transit is a public transportation system in New Jersey.

Long Island Rail Road: The Long Island Rail Road is a commuter rail system in New York.

New York Metropolitan Transportation Authority (MTA): The New York Metropolitan Transportation Authority is a public benefit corporation responsible for public transportation in the New York City metropolitan area.

U.S. Department of Transportation (USDOT): The U.S. Department of Transportation is a federal government department responsible for transportation.