The Metro Flow project will see an existing freight line upgraded and electrified in South Tyneside
Owner Nexus said the dualling of three key sections between Pelaw and Bede stations will create the capacity for an extra 24,000 Metro passenger journeys every day.
It will involve the conversion of an existing heavy rail line, bringing it into dual use so that Metros can run alongside freight services.
Rail Contracts Director at Buckingham Group, Rob Harwood, said: “Buckingham is delighted to win this project and be involved in improving the Metro network.
“Having recently completed the construction of the Howdon depot for Nexus in 2020, we are now able to continue working with Nexus and involving the supply chain in the region on this exciting project.
“We will also work with the local community to minimise any inconvenience and involve local schools and colleges in the educational benefits from a significant project in their area.
“The first phase will be detailed design this year and then mobilise for the construction phase early next year.”