The project is due to be completed in 2019 and as well as benefitting commuter rail operations will allow California High-Speed Rail services to run into San Francisco on Caltrain infrastructure.
The cost of the project is estimated at $US 1.2bn, with a further $US 440m required for the acquisition of a fleet of electric commuter trains.
Caltrain expects electric trains to provide 75% of its total service by 2019, with diesel traction remaining for services running beyond San Jose.
