When Penn Station was torn down in the 1960s, Passenger train service was expected to end within ten years. Amtrak was suppose to be something to leave passenger train travel to die out with the minimum of protests by showing how the Government tried to save it and could not (unfortunately for the plan, train travel increased in the 1970s due to the first oil crisis, something no one who was involved in setting up Amtrak expected).
Today, the reverse seems to be the case, it is Auto and Air traffic that seems to have peaked, leaving any expansion to the passenger rail. Thus the call for a new railroad Tunnel from New Jersey (that Governor Christie killed) and other connections, using Penn Station and Grand Central Station as the bases for those additional trains.
Remember, right now, the number of trains are maxed out the Present Penn Central Station and thus it has to be expanded IF addiitional trains are added (and most people expect them to be). Thus an expansion of Penn Station has been in the works for decades:
Since 1976, the station has seen weekday train movements increase 89%, from 661 to 1,248, and is considered to be at capacity. In 2010, the station saw 550,000 daily boardings/alightings
http://en.wikipedia.org/wiki/Gateway_Project
More on the Cross Harbour Rail Tunnel:
http://en.wikipedia.org/wiki/Cross-Harbor_Rail_Tunnel
an along the entire east side, and the Westclox "Big Ben" clock over the south concourse.
Amtrak left the station on April 7, 1991, with the completion of the Empire Connection, which allowed trains from Albany, Toronto, and Montreal to use Penn Station. Previously, travelers had to change stations via subway, bus, or cab. Since then, Grand Central has exclusively served Metro-North Railroad.
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