A consortium led by Australian construction company John Holland has won the A$1bn ($742.8m) Rail Infrastructure Alliance’s package of works for the Melbourne Metro Rail Project.

The plan involves building a 9km-long tunnel and connecting it to the existing network, along with additional station upgrades, tunnel, track and signalling works along the Sunbury and Dandenong lines.

The consortium, which includes CPB Contractors and AECOM, will build the tunnel entrances in South Yarra and Kensington.

“When the Metro Tunnel opens in 2025, it will be a game changer – bringing a true metro-style rail system to Melbourne for the first time.”

The twin tunnel entrances will see dozens of trains pass through each hour. The scope of the project also includes upgrades of selected stations, tunnelling, tracking and signalling works along the Sunbury and Dandenong lines.

John Holland CEO Joe Barr said: “When the Metro Tunnel opens in 2025, it will be a game changer – bringing a true metro-style rail system to Melbourne for the first time.

“John Holland is thrilled to be part of Rail Infrastructure Alliance and continue our involvement in this project to revolutionise public transport in Melbourne.”

The installation of a new signalling system will enable trains to pass through the new entrances every two to three minutes in each direction.

Upon completion, the project is expected to cut waiting times and reduce congestion across Melbourne’s train network by providing Melbourne’s three busiest lines with a new underground pathway through the city.

The additional capacity will provide for an extra 504,000 passengers each week across the network.

John Holland executive general manager Trevor Hall said the Rail Infrastructure Alliance will have a crucial role in creating an integrated and operational rail system in Melbourne.

He added: “Our team will operate in a spirit of collaboration with our delivery partners, stakeholders and local communities to deliver a world-class metro system that will enhance the livability of our city.”