Two train derailments on the Albury line within a month will cause a delay to the $235 million track upgrade, the Border Rail Action Group has warned.
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Thursday's tragic incident at Wallan followed the derailment at Barnawartha on January 29.
The Australian Rail Track Corporation was due to start work on upgrading the track soon and have it completed by mid-2021, but BRAG chairman Bill Traill said it was "ridiculous" to say that timeline would be met.
"The two incidents together, it doesn't matter what's caused them, the track is in appalling shape," he said.
"There's a pile of work to do beyond just ordinary maintenance on the track - structural problems they just won't be able to fix in 13 months."
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Passengers had been reporting issues of rough rides, speed restrictions and regular signal problems to BRAG over previous months before the two trains ran off the tracks.
"The ordinary maintenance situation, which has allegedly been enhanced, is just doing no good at all," Mr Traill said.
"There are increasing signs - and these two accidents have confirmed this really because they are at least in part track-related, if not wholly - that this was a portent of a very serious pre-upgrade conditions of the track.
"It's reinforced our concerns that $235 million is not enough.
"To use a sporting analogy, the contractors are five metres behind scratch, there's that much work to do."
Some passengers have already sworn to never catch the train again.
But Mr Traill urged people to continue using the trains, as these types of incidents were rare.
"It's bound to have a negative effect," he said.
"There's a plea there to recognise that for the people who enjoy this experience, the railways have an excellent record of safety and security and this is a one-off incident that we will learn lessons from."
BRAG is also in discussions with Public Transport Victoria about the design of new rolling stock, with the final design expected soon.
Mr Traill said his concern was with the lack of seats on the train as the carriages were expected to be limited to a single set of three, with extra space for luggage, bicycles and disabled access.