Home » Santa Clara VTA awards contract for light rail extension

Santa Clara VTA awards contract for light rail extension

By Trains Staff | March 11, 2024

| Last updated on August 6, 2025


Unanimous approval comes despite significant increase in cost; operations could begin in 2028

Map showing 2.4-mile light rail project in San Jose, Calif.
The planned extension of the VTA light rail Orange Line to Eastridge, as shown in an environmental impact report. Santa Clara Valley Transportation Authority

SAN JOSE, Calif. — The Santa Clara Valley Transportation Authority has awarded a contract for construction of a 2.4-mile extension of its light rail system in East San Jose, despite a contract more than one-third higher than the agency’s original estimate.

The VTA’s board last week unanimously approved the extension from the Alum Rock station to the Eastridge Transit Center, which will allow connection to the Milpitas station for Bay Area Rapid Transit. The San Jose Mercury News reports that, because of increased labor and material costs, the lowest bid fr the contract came in at $437 million, 38% than the agency’s estimate of $316 million. With money already spent, the total cost will be $653 million

The route is currently served by a bus that takes 11 minutes; the rail line will cut the travel time to less than five minutes.

Funding will include $313 million from a measure approved by voters; $130 million from a 2018 bridge toll increase, and $86 million in state funds, including $46 million awarded last year under the Transit and Intercity Rail Capital Program [see “State funds will allow San Jose light rail project to proceed,” Trains News Wire, April 25, 2023]. Agency reserve funds will cover the remainder.

A consortium of Sacramento-based MCM Construction and New York City-based RailWorks Corp. submitted the winning bid. They promised to cut a year off the original timeline, meaning service could begin in 2028.

Share this article