Skanska secures USD 957 million light rail transit construction contract in California

Skanska, in a joint venture with Stacy Witbeck, has secured a USD 957 million share of a USD 1.9 billion contract awarded by the Los Angeles County Metropolitan Transportation Authority to construct the East San Fernando Valley Light Rail Transit Project in Van Nuys, California, with completion set for December 2031.

The Los Angeles County Metropolitan Transportation Authority has awarded a USD 1.9 billion contract to a joint venture comprising Skanska and Stacy Witbeck to construct the East San Fernando Valley Light Rail Transit Project in Van Nuys, California. Skanska will include its USD 957 million share of the order in its third-quarter order bookings. The project scope encompasses building a 10.8-kilometer, at-grade light rail line along Van Nuys Boulevard, a 10.5-hectare rail and maintenance facility, utility improvements, and 11 new passenger stations equipped with shade structures. On-site construction has commenced, with full project completion targeted for December 2031.

Headquartered in Sweden, Skanska AB is a multinational construction and project development group that executes major civil infrastructure, commercial, and residential developments across Northern Europe and the United States. The Los Angeles County Metropolitan Transportation Authority, commonly known as LA Metro, is the public transportation operating agency responsible for planning, constructing, and operating public transit systems throughout Los Angeles County.

This major rail expansion addresses critical urban mobility needs across high-density residential corridors in Southern California. By establishing a dedicated light rail corridor along heavily trafficked arterial roadways, the infrastructure directly connects underserved communities to the broader Los Angeles rail network and the existing G-Line bus system. From an infrastructure policy perspective, the investment reflects ongoing public authority prioritization of sustainable transit networks designed to reduce vehicular congestion, decrease regional transportation emissions, and spur transit-adjacent economic growth.

For engineering and construction firms, multi-year public transit contracts offer long-term revenue visibility and backlog stability within the North American market. The award highlights strong demand for large-scale urban infrastructure development amidst growing municipal commitments to public transportation modernization. In addition, large transit investments generate significant economic spillover, benefiting regional supply chains, creating local civil engineering jobs, and boosting commercial real estate potential along major transit corridors.