The state and federal governments have announced a $176 million construction blitz, on the Bendigo to Echuca rail line.
The works have caused headaches for rice processor SunRice, which says it'll now have to send products from its Denilquin plant to the Port of Melbourne by road.
Transport Infrastructure Minister Jacinta Allan, Nicholls Nationals MP Damian Drum and Victorian Liberal Senator Sarah Henderson confirmed major works would take place during September and October on the Bendigo and Echuca line upgrade.
The track upgrades will allow trains to travel at up to 130 km/h between Epsom and the new Goornong Station, up from 80 km/h.
Ms Allan said that while trains were not running, construction would also commence on the new Victorian government-funded stations at Goornong and Huntly.
"The people in these communities have told us how important these new stations are to them and the future of their towns, so it's great to see construction getting underway," Ms Allan said.
"By doing these station works alongside these vital track upgrades, we're reducing the need for future disruptions on the line and making life easier for passengers as we deliver these massive benefits."
Mr Drum said the upgrades would enable trains to travel faster between the major regional centres of Bendigo and Echuca.
"These upgrades are all about bringing communities between closer together and strengthening the regional economy," Mr Drum said.
"John Holland has been appointed to deliver the track upgrades, which include replacing more than 20,000 sleepers, new ballast, drainage improvements, rail bridge upgrades, mud-hole removal and level crossing modifications to boost safety."
The $176.2 million Bendigo and Echuca Line upgrade is part of a broader investment in Regional Rail Revival.
Coaches will replace Echuca Line trains between Bendigo and Echuca from September 1 until October 31
Development of the new electronic train order (ETO) system being delivered by V/Line as part of the Bendigo and Echuca Line Upgrade is also progressing, which will allow additional weekday return services to both Eaglehawk and Epsom, and triple the number of weekday services to and from Echuca after completion in late 2022.
Freight derailment
V/Line is also investigating an incident, involving a freight train, at Mitiamo last week.
Coaches replaced two services on the Swan Hill line following the incident, after and incident involving a grain train, on a siding at the halt.
Sergeant Gary Walter, Maryborough police, said a wagon became dislodged at 130am.
"A grain train was shunting and hooking (wagons) onto another train," Sgt Walter said.
"The tracks have given way and it's come to a stop. "
There were no injuries or major damage.
"It happened when one train maneuvered, the tracks under it have given way.
"We believe the sleepers underneath have given way and rails spread causing one of the wagons to dislodge."
A V/Line spokesman said the train was blocking the main line, used for Swan Hill passenger services.
The freight train was moved out of the siding when it was safe to do so, to allow crews to repair track damage in the siding and allow normal freight train operations to resume.
The Office of the National Rail Safety Regulator (ONRSR) has been advised of the incident.
