Atkins, the FTSE 250 engineering firm, has won the signalling and power and distribution contracts for the Cardiff Area Signalling Renewal project.
Network Rail has set Atkins a target of delivery by 2015, in return the company expects to receive revenues of £64m.
Atkins will design and implement the replacement of signalling and power equipment across 192 miles of track between Newport and Port Talbot, covering the Vale of Glamorgan and Valleys areas.
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Professor Dr Uwe Krueger, Atkins' Chief Executive officer, said: "This is another important success for our UK business and is a further sign of Network Rail's confidence in our rail team."
Atkins shares have risen 7.7% so far this year.
