Nexus has awarded TXM Rail a four-year renewal and upgrade framework contract for the Tyne and Wear Metro.
TXM Rail, a division of TXM Plant, will provide permanent way, associated signalling and electrification and civils work with design works in support of a £389 million renewal of the network.
TXM Rail will open a depot in Newcastle upon Tyne to deliver the framework.
The director of rail and infrastructure for Nexus, Raymond Johnstone, said: “We are now half way through our £389 million modernisation programme.
“More than £200 million has been invested in Metro since 2010, but more major schemes lie ahead to replace key infrastructure including tracks, bridges, embankments and overhead lines.
“There are more major works in the pipeline as we press ahead with the investment programme, having hit all of our spending targets.
“TXM will be playing a critical role in some really big ticket capital schemes over the next four years.”
Mark Wood, rail services director at TXM Rail, said: “This tender win for TXM Rail on the Nexus project is a result of a successful first year for the division.
“We have worked extremely hard throughout the whole process providing both innovative materials and creative solutions for the project, making this win something we are extremely proud of.”
The Metro, which covers a network of 60 stations in North East England, was recently identified as the fastest-growing light rail system outside of London.