Barhale Rail, a division of Walsall-based civil engineering group Barhale, has become an accredited contractor for Network Rail.
The group has passed Network Rail's Contractors Assurance Case audit and will be allowed to tender as a main contractor for civil engineering, tunnelling, earthworks, bridgework and fabrication projects.
The group will be able to work directly with Network Rail, plus all train operating companies and Transport for London.
Ed Maloney, general manager of Barhale Rail, said: "Gaining Network Rail accreditation is an important first step in a five year plan to generate £50 million annual rail turnover."
As a result of the accreditation Barhale Rail has already picked up its first order from Transport for London, and is currently tendering for bridge and tunnel strengthening projects with Network Rail.