Construction work has begun on phase I of Moynihan Station in New York, US.

The work includes the expansion and enhancement of the 33rd street connector between Penn Station and the West End concourse, as well as widening the concourse to serve nine of Pennsylvania Station’s 11 platforms.

The federal government signed a final grant agreement to provide $83m in Recovery Act funds to New York for phase I of the project, which is estimated to cost $276m.

The funds will be used to streamline rail operations, increase vertical access points and provide entrances into the West End concourse.

The work is expected to be complete by 2016, while planning is underway for phase II, which will include the construction of an intercity train hall.