Two dangerous level crossings will be removed in Diggers Rest, with works to get under way in the coming weeks.
It is estimated that 8000 vehicles travel over the level crossings, located on Old Calder Highway and Watsons Road, every day.
Road bridges will be built to permanently separate vehicles and trains on the Sunbury Line.
The construction of these bridges over this section of track is expected to save 36 minutes of boom gate down time.
The works are not expected to be completed until 2025, with the majority of the project commencing later in the year.
Initial work will include setting up temporary fencing, site offices, works areas, signage, and removing vegetation at Old Calder Highway.
The project also includes upgraded and accessible walking paths, cycling paths and pedestrian crossings in the Diggers Rest Station precinct, as well as improved lighting and the installation of CCTV cameras.
Over 35,000 new trees, shrubs and grasses will be planted in the project area, including a diverse range of native plants natural to the surrounding environment, as part of a landscaping effort to create new public spaces.
Longer bus bays will also be built to the west of Diggers Rest Station to service existing and future bus routes.
