Swedish rail operator Storstockholms Lokaltrafik (SL) has signed a two-year project agreement with Veidekke Anläggning and Eltel to build a rail station and new tracks.

Eltel’s rail business will act as a subcontractor in the Skr270m ($31m) project to perform rail-related works.

A new railway station is expected to increase the rail capacity, as well as improve the availability of 10min traffic on the ‘Roslagsbanan’ railway in the northern part of Stockholm.

"This contract is a proof of our technical competences, our good cooperation with other companies and our price competitiveness."

Scope of work for Eltel includes installation of electricity, catenary, signaling and telecommunications.

Work is expected to start in the fourth quarter and is scheduled to be concluded in 2017.

Eltel rail and road president Fredrik Häggström said: "Storstockholms Lokaltrafik is an important customer for Eltel and we are very satisfied to be able to continue our previously started cooperation with all parties in the project.

"This contract is a proof of our technical competences, our good cooperation with other companies and our price competitiveness."

Earlier this month, Eltel has won five rail and road contracts at a total value of €15m in Denmark, Sweden and Finland.

The scope of work includes the provision of electrification, communication, and signalling and safety systems.

Danish railway administration Banedanmark has signed a contract on rebuilding of a rail track between Nyborg and Odense.

Under the deal, Eltel will act as a subcontractor to a consortium consisting of Strukton Rail and Arkil.