The Government of Victoria (Australia) has revealed the shortlisted of bidders to build and operate Melbourne's new fleet of 37 new high capacity trains.

Minister for Public Transport and Employment, Jacinta Allan, announced on Monday that three consortia headlined by local manufacturers have been selected for the next phase of the tender process.

They shortlisted teams are:

• Bombardier - comprising Bombardier Transportation Australia, Macquarie Bank, ITOCHU and Infrared Capital Partners
• Eureka Rail - comprising Alstom, the Bank of Tokyo-Mitsubishi UFJ and John Laing
• Evolution Rail - comprising Downer EDI, Changchun Railway Vehicles and Plenary

The Andrews Labor Government's strict local content requirements mean rolling stock manufacturing must take place in Victoria.

The new trains will be longer than existing trains - able to carry more people with every journey - and will use the latest technology, making them safer, more reliable and more comfortable for passengers.

The shortlisted parties will be requested to submit a formal proposal in the second quarter of 2016. The tender process is expected to be complete before the end of 2016, with the first train to be delivered for testing in late 2018.

The AU$1.3 billion (US$991.7 million) investment in 37 high-capacity trains is the largest investment in new rolling stock in Victorian history.

The high-capacity trains will run on the Cranbourne-Pakenham line, Melbourne's busiest. Together with signalling upgrades and the removal of every level crossing between Dandenong and the city, the new trains will boost capacity on the Dandenong corridor by 42 percent, to carry 11,000 extra passengers every morning peak.

The project is being procured as a public private partnership.