Billions of dollars invested to deliver vital VIC road & rail projects

Monica Gameng   |   March 2, 2025
Melbourne skyline (cr: Wikipedia)

The Australian Government is investing billions of dollars to build Victoria’s future, including $3.3 billion for new road and rail projects that will help boost economic growth as well as improve connectivity and relieve congestion on suburban roads. 

The Federal Government is partnering with the State Government to fund and build a rail link to Melbourne Airport, providing a new transport option for people in Melbourne’s west. 

“My Government is Building Australia’s future – and that means Building Victoria’s future too. We want to make sure all Victorians have the services and the infrastructure they need now and into the future. 

“We will partner with the Victorian Government to deliver rail upgrades, while also working to upgrade key roads to provide immediate congestion relief. 

“This is good for local jobs, good for local businesses and good for commuters,” Prime Minister Anthony Albanese said. 

“We’re delighted to have a partner in Canberra who is investing in the infrastructure that Victorians need and delivering much needed projects for a growing population in the west, north and east,” Premier Jacinta Allan said. 

An additional $2 billion is also being invested by the Australian Government towards the transformation of Sunshine Station, which is part of its commitment to build the Melbourne Airport Rail – the next important step in the Suburban Rail Loop development. 

This funding commitment builds on the existing $5 billion to construct the rail line to Tullamarine, taking the overall Federal Government funding to $7 billion. 

The Victorian Government is also bringing forward its Melbourne Airport Rail funding to enable the works at Sunshine Station to commence. 

The joint investment will help transform Sunshine Station into a transport superhub that will feature extra platforms and a dedicated spur line that will make this station the hub for regional rail services linking to Melbourne Airport. 

The significant funding will also deliver track, bridge and signalling improvements that will enable future upgrades to service Melbourne’s north and west, including enabling the beginning of work on the electrification of the Melton Line. 

“Reconfiguring Sunshine Station will not only create more capacity for more services, but also marks the first stage of works for Melbourne Airport Rail and paves the way for future upgrades to electrify the Melton Line,” VIC Minister for Transport Infrastructure Gabrielle Williams said. 

This is a vital part of delivering better services for people in the west going to work, not just the airport. 

People travelling from regional Victoria will not have to catch a train all the way into Southern Cross and then back out to Tullamarine. 

Commuters will be able to switch to a direct airport link as soon as the train gets to Sunshine. 

And for those travelling from the South East, a straight-through trip via the new Metro Tunnel will be available. 

“Melbourne’s west is growing at a rapid rate and upgrading the Sunshine Station will help to accommodate this growth. 

“The Australian Government is delivering the world-class infrastructure people in Melbourne’s west need and deserve,” Federal Member for Fraser Daniel Mulino said. 

The Australian and Victorian Governments are working together to deliver the projects the State needs to connect a growing population. This includes developments such as Melbourne Airport, North East Link and the Suburban Rail Loop. 

The two governments will also be jointly investing $1.2 billion towards a Suburban Road Blitz. This new package of works will help increase capacity as well as improve efficiency in growth areas surrounding Melbourne. 

The Australian Government is committing $1 billion while the Victorian Government will invest $200 million. 

The first tranche of projects to be delivered, with works to begin later this year, include: 

  • Old Sydney Road Upgrade, Wallan – $45 million 
  • Evans Road Upgrade between Duff Street and Central Parkway in Cranbourne West – $30 million 
  • McLeod Road and Station Street Intersection Upgrade, Carrum – $3 million 

Funding is readily available to fix roads that are in need of repair. 

These projects will be transformative for Victoria’s south east and the north. Additional projects will be decided in consultation with the State Government. 

Additionally, other investments Victoria needs will also be delivered, including: 

  • Delivering $325 million towards the Melton Line upgrade, to increase the rail capacity by 50 per cent 
  • $20.5 million towards planning for Melbourne Western Suburbs Rail upgrades 
  • $7.05 million towards planning for Melbourne Northern Suburbs Rail upgrades 
  • Partner with the Victorian Government to deliver $44.7 million of upgrades to the Princes Highway Corridor, with the funding split 50:50 and works to commence later this year 
  • $10 million towards a business case to investigate upgrading key roads and structures across the High Productivity Freight Vehicle network, with the Victorian Government to deliver the other $10 million 

“Delivering vital upgrades to Sunshine Station and road congestion hotspots will support Melbourne’s growing population by allowing them to move faster and more safely around the city and its suburbs. 

“These projects will enhance the resilience and reliability of the transport network, better connecting people wot where they live, work and play,” Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said. 

Source: Minister for Infrastructure, Transport, Regional Development and Local Government; Prime Minister of Australia – Media; Roads & Infrastructure Australia; Infrastructure Magazine 

Monica Gameng
As Felix's Marketing Assistant since 2015, Monica is responsible for researching and sharing new and progressing projects within the construction and mining sectors in Australia. It's no surprise that Monica has her finger on the pulse of Australian major projects given she has produced more than 1,000 posts. She truly is an industry expert.
Follow me:

Related Articles

Projects
$9.3bn new funding committed to deliver VIC Suburban Rail Loop East

Victoria’s largest transport infrastructure will begin major construction next year following the announcement of a $9.3 billion funding investment from the Victorian Government to get the gear moving on Suburban Rail Loop (SRL) East. 

Projects
2018-19 Budget: VIC key transport infrastructure projects

The second post on our 2018-19 Federal Budget series featured the key transport infrastructure projects for the State of New South Wales. On this third 2018-19 Budget post, we will tackle the key Victorian transport infrastructure projects.

Projects
2020/21 VIC Budget invests billions to build road and rail projects

Through the 2020/21 Victorian Budget, the State Government is investing billions of dollars to build road and rail projects across Victoria to help drive the local economy towards recovery from the recent pandemic as well as create thousands of jobs. 

Get the latest project news

Formerly known as the PlantMiner blog, Felix Project News is Australia's top 10 Construction blog. Join thousands of construction and mining pros getting the best content right in their inbox.
  • updates on Australia's pipeline of state and federal projects
  • fresh contract awards from major contractors and builders

If you're looking to contact us about other matters, please contact us.