The global consulting and engineering group Poyry said Tuesday it had won a EUR4 million railway construction management contract from the Finnish Transport Agency.

The new contract covers the second phase of the Seinajoki-Oulu railway line refurbishment, except for the Kokkola-Ylivieska section. The award to Poyry follows its successful involvement in the first phase of the project which commenced in 2007. 

The engineering group said the contract had been awarded to its Urban & Mobility business group and that work would start immediately. The company said it expects to complete the project in 2014.

The Seinajoki-Oulu railway line is a key rail route which links northern and southern Finland.

Poyry said the development of the rail line is likely to raise the "competitiveness" of rail traffic and transport, and generate new regional trading opportunities.

The firm said it was also working on other specialized railway projects, including the supervision of several high speed rail construction projects in China and Spain.

Poyry is additionally managing rail design projects in Romania, Poland, Germany and Finland, as well as working on metro rail projects in Brazil, Peru and Finland.

Poyry, which is listed on the Nasdaq OMX Helsinki exchange, reported net sales of EUR682 million in 2010.

Author: Justin Cole, analyst.