The number of weekday train services between Echuca and Bendigo will triple thanks to an equipment upgrade, the state and federal governments announced.
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Contracts have been signed to deliver what's known as an 'electronic train order' system on the Echuca and Swan Hill lines.
The governments said the upgrades would allow for more services to and from the Epsom, Eaglehawk and Echuca stations.
"This project will triple the number of services to Echuca and make those services faster, connecting passengers in these communities to more opportunities for work, education, health and recreation within Bendigo and Melbourne," state transport infrastructure minister Jacinta Allan said.
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"We are continuing to roll out our program of critical infrastructure works - including the Bendigo and Echuca Line Upgrade - to support jobs and keep our economy going."
The federal government said funding for the work was coming from its "infrastructure pipeline".
"The Australian Government's investment in this cutting-edge technology will not only improve regional rail in Victoria but secure Victoria's future as we move beyond the COVID-19 pandemic," deputy prime minister Michael McCormack said.
"The new system will deliver much-needed additional services for passengers in and around Greater Bendigo and has the potential to transform the way some of the state's long-distance lines operate."
The upgrade is due to be finished by the end of 2022.
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Meanwhile, the state government said a new station along the Echuca line at Goornong was on track to be completed this year.
"The contractor has already commenced site investigations in Goornong and will ramp up works in the coming months, with construction to take place alongside V/Line-delivered track upgrades which will increase the speed of trains between Epsom and Goornong," the government said.
The station is the first of three to be developed north of Bendigo, with facilities to follow at Huntly and Raywood during 2022.
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