THE North East line will receive $140 million after the Turnbull government agreed to contribute an extra $600 million to fund an upgrade of Victoria's regional rail system.
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Earlier this year the Andrews government announced a major rail upgrade by banking on a federal funding bonus it claimed it was owed for leasing the Port of Melbourne. But the Commonwealth derided that promise as a "Santa wish list", and Victoria and the Federal Government have been locked in a bitter dispute over the money for the last two months.
The additional $600 million – part of a $1.57 billion overhaul – is being claimed by the Andrews government as a victory in a drawn-out dispute over federal funding for Victoria.
A letter from Prime Minister Malcolm Turnbull, seen by Fairfax Media, confirmed the Commonwealth would provide $1.42 billion for the regional rail package.
Victoria now appears to have secured $600 million more than it was initially offered by the Turnbull government. It is not clear if the extra money has come from the asset recycling fund.
"Our funding allows the regional rail network to be better linked," federal Transport and Infrastructure Minister Darren Chester said.
The agreement includes $555.6 million for the Ballarat line and $110 million for Surf Coast rail that will allow for the duplication of tracks between South Geelong and Waurn Ponds. The Gippsland line will receive $435 million for an upgrade the Andrews government has said will create 400 jobs.
In addition, $114 million will be spent on the Warrnambool line, $91 million on the Bendigo and Echuca lines, $94 million for the Avon River Bridge upgrade and $30 million for freight projects.
Victoria will contribute a total of $150 million to the works.
