Benalla mayor Danny Claridge said it would be "fraught with danger" for the Australian Rail Track Corporation to overlook council and community's wishes for a track realignment for the town's rail station.
Draft designs were made public this week of two options to allow for safe passage of double-stacked freight trains through Benalla.
The initial plan was to build a new railway overpass double the height and size of the existing structure, labelled by councillors and residents as an "eyesore", and while it's not off the table, the ARTC will now consider a new platform, the realignment of 1.3 kilometres of track and upgraded pedestrian access at Benalla station.
For the track realignment design, options for pedestrian access include an overpass with four elevators and stairs to access to the second platform, or an underpass beneath the two tracks to access the new platform.
The ARTC will also look to enhance vehicle movement at the entrance to the station with upgraded bus access and car parking.
Councillor Claridge said it's a great outcome for the community which has the full support of the council.
"We're very much appreciative of the ARTC coming up with exactly what the community wanted," he said.
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"For the next 100 years in Benalla, it will totally change what has happened in the past and gives the station back to the town.
"The local rail group (Better Benalla Rail) has been opposed to the second platform. Going back to one platform would create a bottleneck in Benalla, so I think the second platform is a brilliant solution."
Cr Claridge said he shared similar concerns with Better Benalla Rail chair Suzie Pearce about the track realignment with an extra platform being overlooked due to the increased cost, which could see the ARTC revert back to the initial bridge plan, but is glad it's now become an option.
"They still have to decide on an option and unfortunately the overpass is still on the table, but it has absolutely no support from council or no support that I can see in the community," he said.
The ARTC's Victoria projects general manager Ed Walker said it will continue to work with Benalla Council, the Benalla Working Group and broader community to review the options.
"We want to hear from the community because these are preliminary designs, and feedback we receive will help develop and refine elements of each option," he said.
"The upcoming consultation will focus on the track realignment option, and what that would look like for the station precinct."
Designs for Benalla station can be viewed on the Inland Rail website and in person at the ARTC's shop on Nunn Street.
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