The Murray Basin rail project in Australia is set to start after the Labour government approved $30m in funding for the first stage of the project.
Within this funding support, approximately $5m will be released in this financial year to conduct pre-construction safety and maintenance works.
The project is aimed to standardise and increase the axle loading of the rail freight lines in Victoria’s Murray Basin region.
Premier of Victoria Daniel Andrews said: "The coalition let our regional freight network deteriorate and it is costing producers time and money.
"This rail line is in a state of utter disrepair, with trains slowing to a crawl just so they don’t derail."
The stage one of the project involves a package of essential maintenance works of the Mildura freight line between Yelta and Maryborough.
Works under the first stage will ensure operational capacity of the Mildura line and also maintain rail access to the intermodal terminals at Merbein and Donald.
In addition, it will make sure the continued bulk grain transport to the ports of Geelong and Melbourne.
Works under stage one is expected to be completed in 2016.
Public transport minister Jacinta Allan said: "By fixing this ramshackle rail line, we’re helping some of our biggest industries stay competitive."
The Murray Basin region annually produces approximately 3.5 million tonnes, which is worth $2bn to Victoria in export value. In addition, it exports mineral sands and intermodal containers worth $1bn and $500m respectively.