Amtrak is moving forward with a redevelopment plan for Baltimore’s Penn Station that could see a hotel built in the station’s head house and the addition of a total of 1.6 million square feet of new shops, restaurants, housing, and offices in and around the historic rail terminal.

The national passenger railway corporation announced this week that it has selected partners to lead the redevelopment effort. The broad outlines of the plan include modernizing and expanding the station to accommodate growth, renovating the station’s upper floors, and supporting development efforts in the surrounding neighborhood.

“Baltimore Penn Station is the eighth busiest station in our national network, and this important step underscores Amtrak’s continued efforts to significantly enhance the station experience and amenities for all travelers,” said Bart Bush, Amtrak’s vice president of real estate, stations, and facilities.

Preliminary plans call for office and residential space to the north of the station along Lanvale Street, connected to an expanded station concourse with new retail outlets, according to Amtrak.

Baltimore-based Penn Station Partners will lead the redevelopment effort.

The Baltimore Business Journal reports that groundbreaking for the project is expected to take place in 2018.

“Penn Station is overdue for a major update,” said Donald C. Fry, CEO of the Greater Baltimore Committee. “It is a gateway to the city and can be a tremendous asset for mid-town. Also, innovative development of the adjacent land has the potential to turn the entire emerging area into a magnet for new economic, cultural and social activity, and jobs.”