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Market analysis··2 min read

Skanska JV secures major contract worth $2.43 billion for light rail project in L.A.

A joint venture between Skanska and Stacy Witbeck has secured an additional $2.43 billion contract for the East San Fernando Valley Light Rail Transit project in Los Angeles County.

AI generatedSkanska JV secures major contract worth $2.43 billion for light rail project in L.A – AI-generated illustrative image
Skanska JV secures major contract worth $2.43 billion for light rail project in L.A.. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

A joint venture comprising Skanska and Stacy Witbeck has secured a further contract for one of the largest public transport projects in Los Angeles County. The Los Angeles County Metropolitan Transportation Authority (Metro) awarded the joint venture an additional contract for the East San Fernando Valley Light Rail Transit project. This increases the total value of the joint venture's work to $2.43 billion.

The project involves a 6.7-mile at-grade light rail line along Van Nuys Boulevard, extending north from Metro's G Line to San Fernando Road. The line will pass through Van Nuys, Panorama City, Arleta, and Pacoima, and will connect to Metrolink and Amtrak. Eleven stations, infrastructure improvements, and a 26-acre rail and maintenance facility are planned. Construction began in July and is expected to be completed by December 2031.

Comprehensive Funding and Regional Connectivity

This contract represents the construction component of a much larger public investment. Metro had previously estimated the total project at $3.57 billion and received an $893 million federal grant for its development. The remaining funding comes from a combination of Measure M funds and other state, federal, and local sources. Metro is also considering a 2.5-mile northern extension to the Metrolink Sylmar/San Fernando station.

The East San Fernando Valley Line is part of a broader wave of transit investments planned for the Valley. In January, Metro opted for an underground heavy rail alternative for its planned Sepulveda Transit Corridor, which will eventually connect the Valley to L.A.'s Westside.

Skanska's Involvement in L.A.'s Infrastructure

Skanska already led a separate joint venture that recently completed the first section of the L.A. Metro's $2.4 billion D Line subway extension. This section added three stations along Wilshire Boulevard up to the Beverly Hills border. These projects underscore the ongoing importance of infrastructure investments for urban development in metropolitan areas.

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