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Construction on a long-awaited project to transform Manhattan’s Farley Federal Post Office building into a new Moynihan Station now is under way.

On Oct. 18, state and federal officials broke ground on Phase I of the project, which calls for expanding and improving the 33rd Street Connector between Penn Station and the West End Concourse, located under the grand staircase of the Farley building. The project’s first phase also includes extending and widening the West End Concourse to serve nine of Penn Station’s 11 platforms, and adding new vertical access points and passenger circulation space, as well as entrances into the West End Concourse through the 31st and 33rd street corners of the Farley building. The project will help relieve congestion at New York’s Penn Station.

Expected to be complete by 2016, the $267 million first phase will be funded through state and federal dollars, including an $83 million Transportation Investment Generating Economic Recovery (TIGER) grant.

Planning is under way for Phase 2, which includes constructing a train hall.