Transport for London (TfL) has moved a step closer to a new railway for East London by awarding a £363m contract to a consortium comprising Balfour Beatty and Carillion.

The new railway will run between West Croydon, Crystal Palace and Dalston Junction and incorporates the East London Line.

When complete it will join up with the existing North London Railway via a link at Dalston Junction - a major move towards an orbital rail network for London.