The Trans4m Rail joint-venture (JV) between John Holland and SEE Civil has secured a A$693m ($505.45m) contract to upgrade a section of the Inland Rail project in Australia.

Awarded by the Australian Rail Track, the contract involves upgrading a 171km stretch between Narrabri and North Star. The JV won the contract through a competitive tender process.

Australian Finance Minister Simon Birmingham said: “With the award of this contract, there will be flow-on effects through the economy with more local businesses and suppliers set to come on-board and support Inland Rail construction.

“The upgrade of another 171km of track is another important piece in the puzzle to delivering better and quicker freight access to our primary producers in regional Australia, helping them get their product to markets in Australia and overseas with more ease.”

Inland Rail is an under-construction railway line that aims to improve freight movement in Australia. Once complete, the 1,700km-long project will connect Melbourne and Brisbane via regional Victoria, New South Wales and Queensland.

As agreed, Trans4m Rail will be responsible for upgrading the existing rail line between Narrabri and North Star under the first phase of work.

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Further design work will be undertaken in the second phase of the programme.

The first phase construction works are scheduled to begin before the end of this year.

Australian Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said: “Inland Rail is going to change the freight task in Australia and in doing so, will create opportunity in regional Australia with unprecedented investment and job creation.

“This nationally significant infrastructure is being built by the skills and expertise of Australian businesses – businesses that invest locally, drive regional employment and give back to communities along this 1,700km corridor of commerce.”