ROAD and rail transport upgrades to assist in getting agricultural products to market are a key plank of the new state Labor government's first budget.
The government has reiterated its commitment to spend $220 million on the Murray Basin Rail Project but says it will not be completed until the first half of 2018.
Both Treasurer Tim Pallas and Agriculture Minister Jaala Pulford were cautious about where the money for the project would come from.
Mr Pallas said the legislation allowing for the sale of the port lease should go to parliament soon.
"The money is being put into the Victorian infrastructure transport fund and that will be established as part of the legislation attached to the long-term lease of the Port of Melbourne," Mr Pallas said.
"The first port of call on the funds will be level-crossing-removal projects.
"Hopefully there will also be a number of additional asset and construction opportunities."
The government has set aside $16m up to the end of this financial year, $30m in 2015-16 and the remaining $174m by the fourth quarter of 2017-18 for the Murray Basin Rail Project.
Legislation for sale of the port would be introduced in parliament's spring session, Mr Pallas said.
He said the upgrade of the rail link was part of $22 billion of planned infrastructure projects for Victoria.
"I make no apology for taking the time, giving real work for Infrastructure Victoria to do, to set priorities around infrastructure spend," Mr Pallas said.
"But I don't think Victorians would have any doubt that the infrastructure we are proposing to invest our money in stacks up.
"This is not going to be a profession of faith any more when it comes to infrastructure - we are going to deliver it but make sure Victorians know what we are going to deliver, what our priorities are and why it's important to us."
Infrastructure spending needed to be carefully planned with a proper business case, he said.
"We are not going to march into them where we deliver a sub-standard product," Mr Pallas said.
He said the government intended to deliver "quality infrastructure in a timely fashion".
Ms Pulford said a business case for the Murray Basin Rail Project would be released within weeks, as the new government had found there had not been quite as much preparation done as it had first expected.
"Our commitment will be $180m-$220m and we will build this," Ms Pulford.
She said the funding for the upgrade was not contingent on the port lease.
"That is a matter for the parliament - the treasurer indicated he is having some preliminary negotiations with the opposition which will enable the long-term lease of the port to occur."
"The money is in the budget.
"The initial $30m was fast-tracked.
"It is very difficult to spent $200m on something that has not has had its business case finalised."
In addition to the Murray Basin Rail Project, the budget also provides $45m in initiatives to secure the future of farming families in a move designed to build industry capacity, grow exports and create new jobs.
It will also spend $47.8m on bridge strengthening for freight efficiency this financial year as part of a total package of $72.8m over three years.
"It will reduce supply chain stress across the state," Ms Pulford said.
Bridge strengthening would take place where current load capacity had been lowered or was forecast to be lowered, she said.
It would also cover key freight routes to allow heavier loads than were currently permitted.
The Victorian Farmers Federation has called for bridge strengthening works to increase mass limits on B-doubles from 68.5 to 74.5 tonnes.
The government expects to spend $47,760 this financial year and $25,000 the following year, with work to be completed in the fourth quarter of 2017-18.
The funding is part of a package provided for 23 projects on key freight corridors to allow heavy vehicles to take more direct routes to farms and towns.
Ms Pulford said bridges would be strengthened on major highways as well as the Mortlake-Ararat Road, Nhill-Jeparit Road and Portland-Casterton Road.
The government has also announced $50m will be spent on upgrading country rail crossings over the next four years.
In addition to the $2m announced in February, another $10m will be spent this year.
The program is intended to upgrade 52 high-risk crossings from flashing lights to lights and boom gates.
Pedestrian crossings will also be upgraded with automatic gates.
