Works to upgrade the Bendigo and Echuca rail line are expected to begin by the end of this year.
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The works, jointly funded by state and federal governments through the Regional Rail Revival program, will include sleeper and track upgrades, signalling upgrades, changes to train control and train protection systems, and works on level crossings and drainage.
The federal government will announce on Monday it is contributing $81.9 million to the $91 million project, with the state government to provide the remaining funding.
The governments say the upgrades to the sleepers and tracks will see speeds of trains between Epsom and Echuca increase from 80 km/h to 130 km/h.
The upgrade work is also expected to increase the frequency of trains to and from Echuca, and between Epsom, Eaglehawk, Kangaroo Flat and Bendigo.
“The project is expected to increase the frequency and capacity of rail services originating and terminating at Epsom and Eaglehawk,” Senator Bridget McKenzie said.