Siemens Rail Automation has won a £40M signalling deal in the South Midlands.
The firm will renew expired equipment between Leamington Spa and Heyford under the contract with Network Rail.
The project will transfer operation of signalling areas currently controlled by two signal boxes in Banbury to a single workstation based at the West Midlands Signalling Centre.
Overall, the scheme will improve operational flexibility and minimise maintenance requirements.
Work started this week and will continue for almost two years.