Ms Gillard joined with Victorian Premier Ted Baillieu and Public Transport Minister Terry Mulder to announce the final six contracts for the multi-billion dollar project.

Bendigo, Ballarat and Geelong will have dedicated tracks through the metropolitan system in the regional rail link. The link is a joint state and federal project that the governments expect will increase capacity and reduce travel time for regional train passengers.

“Anybody who’s travelled on those lines knows the frustration of the delays that can occur, particularly on the regional services, when they meet the metro lines and they’re held in place for two or three minutes,” Mr Baillieu said. ‘‘It’s very frustrating. This will free up the system and provide opportunity for increased capacity.”

The regional rail link will be completed in early 2016.

The latest contract comes after V/Line released data that showed it had again failed to meet its punctuality targets on the Bendigo line.

Bendigo line trains ran on time 89.9 per cent during April, falling short of the 92-per-cent target. Service reliability remained steady at 98.6 per cent in the month.

The April punctuality result was the 12th consecutive month V/Line had failed to meet its target.

Leighton-Downer secured the $43 million contract to design and construct the West Werribee Junction.

Forecasts predict the regional rail link will directly and indirectly employ 5600 people.

Ms Gillard turned the first sod, in her electorate, with Mr Baillieu and Mr Mulder.