A joint venture led by Herzog Contracting Group and FlatironDragados has won a nearly $1 billion contract to design and build a new light rail extension in Los Angeles. 

The $997 million project is one of the largest recent investments in public transportation in Southern California.

The project, officially known as the Sepulveda Transit Corridor, aims to create faster and more reliable public transportation options across a congested section of  LA County. The design-build contract covers 6.7 miles of new light rail and seven stations stretching between Van Nuys and the San Fernando Valley.

The team beat out several major competitors to secure the high-profile project, which is being managed by the Los Angeles County Metropolitan Transportation Authority (LA Metro). The contract is part of LA Metro’s broader efforts to expand its rail network and reduce car traffic in some of the most gridlocked parts of the city. 

Officials say the corridor will help thousands of daily commuters shift from road to rail, easing pressure on key highways and cutting emissions.

Construction is expected to begin in early 2026, with service projected to launch by 2032. The project will include elevated guideways, at-grade sections and a new rail maintenance facility. It also includes sustainable features like electric-powered trains and native landscaping along the route.

The selection of the Herzog-FlatironDragados has delivered large-scale rail and tunnel projects across North America, while Herzog has a deep history in rail systems construction and operations. The firms have previously partnered on other major transit initiatives, including a similar light rail build in Denver and portions of California’s high-speed rail project.

Dragados has also been involved in California’s $105 billion bullet train project, establishing a strong track record in delivering large-scale rail infrastructure across the state. This contract follows a string of wins for rail contractors in California. In late 2023, Bechtel was awarded a $490 million extension of another LA Metro line, reflecting the city’s aggressive push to boost its transit network.

And earlier, LA Metro unveiled plans to extend several corridors as part of its long-term “Twenty-Eight by ‘28” plan - an effort to complete key infrastructure ahead of the 2028 Olympics. With this $997 million light rail expansion underway, LA continues to cement its place as one of the most ambitious transit development zones in the country. 

The project is also expected to generate hundreds of construction jobs, providing a boost to the local economy throughout the multi-year development timeline.