The Webuild-led Terra Verde joint venture has been named preferred bidder for the Tunnels North contract of Suburban Rail Loop East (SRL East), part of Melbourne’s new, 90km orbital railway, billed as the biggest infrastructure project in the state of Victoria’s history.

Joining Webuild in the joint venture are South Korea’s GS Engineering & Construction, and France’s Bouygues Construction Australia.

They now begin detailed negotiations with the Suburban Rail Loop Authority for the design and construction of a 10km section of twin tunnels between Glen Waverley and Box Hill in the city’s eastern suburbs.

The job includes excavating the boxes for the future stations of Box Hill and Glen Waverley.

The Authority said the contract would be awarded later this year.

Webuild said four tunnel-boring machines would be deployed on the Tunnels North job.

The 16km, A$3.6bn Tunnels South contract for SRL East between Cheltenham and Glen Waverley was awarded to the Suburban Connect joint venture of CBP Contractors, Acciona, and Ghella in December.

The Authority said ground investigations and planning for that section were underway ahead of the start of tunnelling in 2026.

“SRL will deliver more more public transport and housing options in the right places, with a long-term vision for 70,000 more homes and 230,000 extra jobs in the areas around the 6 SRL East stations,” the Authority added.