The Scottish Government has awarded a £170 million contract to BAM to upgrade the railway between Aberdeen and Inverness.
Phase one, which will be completed in 2019, includes double-tracking 25-kilometre section between Aberdeen and Inverurie, a new station at Forres and a signalling upgrade along the full route.
The project will pave the way for a half-hourly commuter service between Aberdeen and Inverurie and extra peak services between Inverness and Elgin.
It’s a significant win for BAM, which only recently completed the new Borders rail link between Edinburgh and Tweedbank.
Phil Verster, managing director of the ScotRail Alliance, said: “BAM’s appointment is the first step on a journey that will deliver significant benefits for the North and North East of Scotland.
“Reduced journey times and the ability to run bigger trains with more seats will transform customers’ experience of rail travel.
“This is what the ScotRail Alliance is all about; connecting people with jobs, businesses with customers, and giving communities across Scotland the opportunity to grow and prosper.”
Jerry Dickson, operations director for BAM, said: “Together with our partners AECOM, CH2M, Stobart Rail and Siemens, we are looking forward to commencing work on the Aberdeen to Inverness Enhancement Programme.
“This essential programme of works will improve connectivity between the major cities of Aberdeen and Inverness, with wider enhancements for the local communities in the north of Scotland.”
Main construction works are expected to begin in spring 2016.