Budget to splurge $1.4bn on regional rail upgrades and new Surf Coast line

MORE than $1.4 billion will be splurged on regional rail upgrades, including the first stage of a new rail project to the Surf Coast.

Premier Daniel Andrews and Public Transport Minister Jacinta Allan on a V/Line train. Picture: David Crosling

MORE than $1.4 billion will be splurged on regional rail upgrades by using money earmarked for Victoria after the Port of Melbourne lease.

The major package, set to be included in the Andrews government’s third Budget released on Tuesday, should create 1000 jobs.

It will include $435 million to ­upgrade the Gippsland line and $200 million to boost regional rail services in both Warrnambool and Barwon South.

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There is also $110 million for the first stage of a new Surf Coast rail project, with land reservations for a ­line to Torquay, and $91 million for Echuca and Bendigo upgrades.

The plan, which will need the backing of the federal government, also includes $518 million for a Ballarat line project already announced in last year’s state Budget.

As well as the country cash splash plan, the Sunday Herald Sun can reveal that the Andrews government will embrace a Melbourne Airport rail link, with $10 million put aside to “develop a new airport rail plan in partnership with the private sector”.

But that money will mainly be used to assess potential private sector proposals and development, and look at ways to save money.

Premier Daniel Andrews said the “regional rail revival” project would help Victorians get “public transport they can count on”.

“This huge investment will improve services on every regional passenger line in Victoria, and create more than a thousand jobs across Victoria,” he said.

The country rail package relies on the Turnbull government handing over all the money Victoria is entitled to under what is called an “asset ­recycling fund”.

This fund was set up to give states money if they privatised assets — such as the Port of Melbourne — and spent the proceeds on productivity-boosting infrastructure, by topping up sale prices by 15 per cent.

The first stage of a Surf Coast train line will also be funded. Picture: Jay Town

Despite the port being leased for $9.7 billion, meaning Victoria is entitled to $1.46 billion, the Andrews and Turnbull governments have been locked in dispute over how much would be handed over.

The regional rail package has been designed to provide infrastructure boosts that deliver for voters in federal Liberal-held seats where MPs have recently launched petitions for rail upgrades.

Federal sources have already flagged upgrades to Gippsland and Warrnambool rail lines would be backed by the Commonwealth.

It also funds signalling and station improvements on the northeast line.

Public Transport Minister Jacinta Allan said there were a record 1.9 million trips on V/Line in March.

She said the Budget improvements package would “deliver better tracks, more services and a brighter future for the rail network regional Victorians rely on”.

Ms Allan said the rail link, from Melbourne’s CBD to Tullamarine, would be “a huge investment and needs to be planned properly”.