The contract for stages two, three and four of the Murray Basin Rail Project have been announced by Victoria and the Commonwealth. The $440m project, jointly funded by Victoria and the federal government, is to standardise and upgrade the track from broad gauge to standard gauge, increase axle loading from 19 tonnes to 21 tonnes on the network and allow the region to increase exports through Portland, Geelong and Melbourne.

The first stage of the project was completed last year, with the installation of 175,000 sleepers and 3400 metres of new rail on the Mildura and Hopetoun lines.

Federal infrastructure and transport minister Darren Chester said the project would allow for greater freight efficiency and volume. “There will be huge benefits to the Australian economy, with the project supporting an increase in competition between the three ports and operators of freight trains and increasing export volumes to overseas markets,” Mr Chester said.

Acting Victorian public transport minister Luke Donnellan said the project would make it easier for farmers to get their goods to market, thus boosting exports. “This project will create more than 400 jobs at peak construction, with at least 15% of this workforce being recruited from the Murray Basin region.”