Leighton Holdings Ltd (ASX: LEI) subsidiary John Holland, in an alliance with GHD and the Public Transport Authority (PTA), has been appointed to deliver the $360 million Perth City Link rail project in the Perth CBD. John Holland expects revenues of $310 million from its share in the alliance.

The project involves sinking the Fremantle Line between William Street and Lake Street/King Street to reconnect the CBD with Northbridge and create new land for redevelopment. As part of the works, John Holland will also upgrade Perth Station.

John Holland Group Managing Director, Glenn Palin, said: "Our significant civil construction experience in Perth, along with our experience delivering major works in dense urban environments, places us well to successfully deliver this project. We welcome the opportunity to again work with the Public Transport Authority of Western Australia."

The overall Perth City Link project, which this rail project is a key enabling component, will provide the Western Australian economy with significant social and economic benefits, as resources, materials and labour will be drawn from within the state. The Perth City Link project is expected to attract more than $3 billion of private investment in the local economy, including for the additional construction of residential, commercial and retail space.

Planning and design works will begin immediately and construction is scheduled to commence later this year, with completion expected in 2014.