A $10 million facility will be built at Albury Railway Station to house upgraded trains to run on the North-East line when the latest track repair job is complete.
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VLocity trains are replacing "Classic Fleet" trains operating between Melbourne and Albury with the stabling area set to end a string of graffiti attacks on V/Line carriages when stationed overnight in the border city.
The project is being bankrolled by the federal and state governments with $9 million included in the federal budget handed down on Tuesday night.
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During the late 1970s carriage sheds over the standard gauge track were removed from the Albury station.
"We're investing in fast, reliable and comfortable VLocity trains, built in Victoria, by Victorians, to run on the North-East line when its upgrade is complete," Victorian Transport Infrastructure Minister Jacinta Allan said.
"We're working with the Commonwealth to deliver an extra $10 million to upgrade the stabling at Albury station, which will be completed in time to support the new fleet of VLocity trains.
"The standard gauge VLocity trains will be able to run to and from Albury-Wodonga for the first time thanks to our further improvements right along the North East Line, like level crossing upgrades and a modification to the stabling at South Dynon."
A V/Line carriage was covered in graffiti in March when it was stationed at Albury following the tragic Wallan derailment.
Benambra MP Bill Tilley, who has made multiple calls for increased security, welcomed the investment.
"If it is going to create jobs and increase security for the trains I welcome the money for this project," Mr Tilley said.
"The issues with security in and around the Albury station have been well known for a long time.
"Any investment that is going to benefit this region I'm all for it.
"But for too long we've had instances of graffiti attacks and other security issues."
Further stabling modifications will also be made to the South Dynon railway precinct in Melbourne to allow the new standard gauge VLocity trains to be stored, fuelled and maintained.
Border Rail Action Group spokesman John Dunstan also welcomed measures to protect the new trains.
"It's good to hear that is happening," he said.
"It means it will accelerate the day when we do get a VLocity running up here."
The VLocity trains are being built by Bombardier at its Dandenong factory.
Major construction work started earlier this year, with more than 220 kilometres of tamping, 200 kilometres of drainage reinstatement and 17 kilometres of mudhole removal now finished, as well as improvements at 49 level crossings and 35 rail bridge deck replacements.