Commuter rail line operator Caltrain has awarded a $82.9m contract to Oakland-based Shimmick/Disney Joint Venture for the 25th Avenue grade separation project.
Construction is scheduled to begin later this and expected to last for two and a half years.
As part of the deal and in cooperation with the city of San Mateo, Caltrain will raise the tracks between State Route 92 and Hillsdale Boulevard and slightly lower the road at 25th Avenue in San Mateo.
In addition to reducing local traffic congestion, works are intended to improve safety for both motorists and pedestrians in San Mateo.
The project will also provide an opportunity to complete east-west street connections at 28th and 31st avenues.
Works will include construction of a new elevated Hillsdale Station at 28th Avenue, which will increase safety and reduce traffic.
According to Caltrain, Hillsdale Station will be closed for up to five months in early 2019, to allow for the building of a new elevated Hillsdale Station.
During that period, improved Caltrain service will be provided at the Belmont Station, as well as enhanced SamTrans bus service along El Camino Real.
Caltrain said that the $180m project is included in its capital budget and comprises funding from the San Mateo County Transportation Authority, California High-Speed Rail Authority, California State Department of Transportation (Caltrans), and the City of San Mateo.
The city of San Mateo is the sponsoring partner, which started planning the 25th Avenue grade separation project in 1999.
Caltrain is owned and operated by the Peninsula Corridor Joint Powers Board, provides commuter rail service from San Francisco to San Jose, with limited commute service to Gilroy.