Despite cost blowouts and delays, Gippsland train line upgrades are close to completion

The Victorian Government has announced a $52 million investment in public transport, which will see more train services travelling on the Gippsland line.

In the state government’s 2025/26 budget announcement this week, guarantees were made for new train services every 40 minutes along the Traralgon line, and longer six-car trains on weekends.

Additional services on the Traralgon line will be made possible by the completion of the Gippsland Line Upgrade, slated to finish construction by the end of the year.

Between Saturday June 14 and Wednesday August 13, buses will replace trains on the Traralgon and Bairnsdale lines for part or all of the journey as the new line trainline is constructed.

The Gippsland line upgrades began in 2022. Construction is complete on a new rail bridge over the Avon River and a level crossing upgrade allowing modern trains to run to Bairnsdale.

Cost-blowouts and delays

A performance report into major state projects from the Victorian Auditor-General’s Office published in February showed the current cost blowout and timeline delays in constructing the new line.

The audit showed the long-awaited upgrade, originally slated for completion by 2022, was delayed to June 2024 and is now set to be finished later this year.

The report shows the total cost for upgrading the line ballooned from $531 million to $878 million.

There are upgrades underway at Morwell, Bunyip, Longwarry and Traralgon stations.