The major contract for the $174.3 million Oaklands Park level crossing project in South Australia has been awarded.

Federal Minister for Urban Infrastructure and Cities, Paul Fletcher, said the Public Transport Projects Alliance (PTP Alliance), which consists of McConnell Dowell, Mott MacDonald and Arup, was selected after a competitive tender process.

“Building a rail underpass at Morphett Road will significantly reduce delays for the 42,000 vehicles which travel through this level crossing each weekday,” Mr Fletcher said.

“On an average weekday the boom gates at Oaklands Crossing are lowered for approximately 25 per cent during peak traffic times, so removing this level crossing will slash delays for people using this part of the southern suburbs road network by more than 90 minutes a day.”

South Australian Minister for Transport and Infrastructure, Stephen Mullighan, said South Australian contractors and suppliers would be prioritised for the major infrastructure project.

Federal Member for Boothby, Nicolle Flint, said with traffic volumes expected to grow by more than half again by 2031, the project would future-proof this part of the road and rail network for decades to come.

“Detailed design can now begin on the rail underpass and new station. Fixing the gridlocked intersection will help residents get to work, school, local businesses and the SA Aquatic Centre more quickly, while greatly improving safety,” Mr Flint said.

City of Marion Mayor, Kris Hanna, said project would involve improvements to the bus and train interchange.

“Pedestrian and cycling connections throughout the Marion precinct and local neighbourhood will also be improved, including a shared use path under Morphett Road adjacent to the underpass,” Mr Hanna said.

Major construction is expected to start in mid-2018.

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