Macmahon says it has won a $260 million infrastructure contract in New South Wales as part of a 50/50 joint venture with Bouygues Travaux Publics Australia.

The NSW Government has engaged the joint venture to deliver the North Strathfield rail underpass project in Sydney.

The contract involves a new rail underpass, 3.2km of new track, civil and associated rail systems works and an upgrade of Concord West Station.

The works form part of the North Sydney Freight Corridor Program, a Federal and NSW government initiative to improve capacity and reliability of freight trains on the Main North Line between Sydney and Newcastle.

The structure of the contract will ensure the joint venture recovers the costs of the project, with the margin to be determined based on performance against pre-agreed targets.

The project will employ about 400 people directly, with works to start immediately.

Construction is scheduled for completion in late 2015.