The Bendigo to Echuca train line upgrade will benefit from part of a $300 million funding boost.
Funding from the state and federal governments for the Bendigo-Echuca upgrade will deliver a modernised electronic train ordering system - the first of its kind in Victoria.
Transport infrastructure minister Jacinta Allan said this funding will get shovels in the ground faster.
"(It will deliver) more trains more often for Bendigo and Echuca passengers," she said.
"These critical upgrades will mean better services for passengers while creating jobs and providing a much- needed boost to the regional economy through and beyond the pandemic."
The new system will be able to help provide faster and more frequent services to Echuca and extra services for Epsom, Eaglehawk and Bendigo.
Existing telecommunication networks and V/Line radio equipment will be used by the new technology to ensure services are safer and can run more often.
Funding will also ensure 10 level crossings between Eaglehawk and Bendigo are upgraded to include better train detection technology and higher safety.
Echuca's week-day return services are expected to triple under the new train-ordering system. It includes an additional daily service.
The Bendigo and Echuca Line Upgrade also includes three news stations at Goornong, Raywood and Huntly as part of a $49.6 million Victorian Government investment in Bendigo Metro 3.
Planning and design work for new train stations began in January.
The additional $300 million of state and federal Regional Rail Revival brings the total investment in Victoria's regional rail network to more than $2 billion.
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