The Port Authority of New York and New Jersey is set to begin the first phase of the $270m Moynihan Station expansion project in Pennsylvania, US.
Work, which will include the expansion of a concourse and add entryways on the western end of the station, is scheduled to start by mid-2012 and be completed in 2016.
Skanska will be awarded a $148m contract to build two new entrances to the current Farley Post Office building, with stairs, escalators and elevators that will carry passengers directly to Long Island railroad platforms.
The company is also expected to extend an underground concourse to help passengers reach the three railroads that use Penn Station: New Jersey Transit, Amtrak and Long Island.
With the remaining $122m of the first phase, a ventilation system and an underground walkway will be built at the Penn Station.
The project's first phase, which is being funded by federal transportation and other sources, will expand the concourse on the west end of the Long Island Rail Road tracks, beneath the post office building.
Under the project's second phase, a new passenger terminal will be built in the Farley building for $500m.
Penn Station was built in 1910 and demolished in the 1960s to make way for the present station on the same site. It currently serves about half a million travellers each day.
Phase Two is at present unfunded and talks with the developers, Related Cos and Vornado Realty Trust, are underway.