Work to Begin on Massive Penn Station Expansion After years of starts, stops and half-starts, the long-delayed expansion of New York's Penn Station is set to begin. The Port Authority of New York and New Jersey announced Tuesday the $270 million first phase of the project that will expand a concourse and add entryways on the western end of the station. Work is scheduled to start by the middle of 2012 and be finished in 2016. The new terminal will be named after late U.S. Sen. Daniel Patrick Moynihan, who championed the project beginning in the 1990s. Penn Station serves about half a million travelers per day and is the busiest train station in the U.S. It was built in 1910 and demolished in the 1960s to make way for the current station on the same site.