U.S. Markets open in 8 hrs 45 mins

Hochtief says wins $1.23 billion U.S. rail contract

A worker of German company Hochtief stands in the audience hall at the construction side of the Elbphilharmonie (Philharmonic Hall) in Hamburg January 12, 2015. REUTERS/Fabian Bimmer

FRANKFURT (Reuters) - Hochtief (HOTG.DE) said its subsidiary Flatiron had won a $1.23 billion contract to construct the first high-speed rail system in the United States as part of a joint venture team.

The joint venture of Dragados USA and Flatiron will build a 60 mile-plus (97 km) portion of new high-speed rail between Los Angeles and San Francisco, with construction starting in late 2016 and expected to take around four years, it said.

(Reporting by Georgina Prodha; editing by Thomas Atkins)