North East Rail Upgrade: 2026 Construction Update
Victoria’s North East Rail Line upgrade, part of a $1.13 billion project, is complete, boosting regional rail travel. Improved tracks, signaling, and new trains enhance speed and passenger comfort.

Project Profile: North East Rail Line Upgrade
The North East Rail Line (NERL) upgrade in Victoria, Australia, represents a critical infrastructure overhaul aimed at enhancing operational efficiency, reliability, and passenger experience. This project addressed significant track degradation issues through extensive renewal works, modernised signaling, and the introduction of new rolling stock. As a key component of the A$1.75 billion Regional Rail Revival program, the upgrade has re-established the line as a competitive and reliable transport corridor.
Project Fact Sheet
| Attribute | Details |
|---|---|
| Project Name | North East Rail Line (NERL) Upgrade |
| Location | Victoria, Australia (Melbourne – Albury/Wodonga Corridor) |
| Line Length | 316 km |
| Operational Speed | Increased operational speeds by removing temporary restrictions |
| Estimated Cost | Component of the A$1.75 billion Regional Rail Revival Program |
| Status | Operational (Completed March 2021) |
| Key Stakeholders & Contractors | John Holland (Main Contractor), Bombardier Transportation (Rolling Stock), ARTC, V/Line, Victorian & Federal Governments |
Technical Specifications
Track and Infrastructure Renewal
The core of the project involved comprehensive track rehabilitation to resolve long-standing stability issues. This included the elimination of “mud holes”—sections with poor drainage—by replacing over 150,000 tonnes of ballast. Approximately 105 km of track underwent tamping to ensure correct alignment and compaction. The scope also covered the renewal of 100 level crossings and rail bridges to improve safety and operational reliability. To enhance system resilience, new underground wiring and backup power supplies, including solar power, were installed across the corridor.
Signaling and Power Systems
Modernisation of signaling systems was crucial for improving train scheduling and increasing line capacity. The upgrades enable more efficient train movements and higher safety standards. Complementing the track-side improvements, the communication systems within trains and along the corridor were also enhanced, providing better operational control and real-time passenger information.
VLocity Rolling Stock
A key enhancement was the introduction of six new, three-car VLocity trains specifically configured for long-distance standard-gauge travel. Manufactured by Bombardier in Victoria, these trains feature superior passenger amenities, including comfortable seating, USB charging points, mobile signal boosters, and dedicated luggage space. The fleet’s design includes six wheelchair spaces and accessible toilets per train, significantly improving accessibility. The successful integration of these modern units has increased overall network capacity and passenger comfort.
Key Takeaways
- Enhanced Reliability and Performance: By eliminating chronic “mud holes” and renewing over 100 km of track, the project has drastically reduced speed restrictions and improved on-time performance for passenger services.
- Modernised Passenger Experience: The introduction of new VLocity trains with modern amenities, including improved accessibility and connectivity, has made rail a more competitive and attractive alternative to highway travel on the Hume corridor.
- Significant Regional Economic Impact: The project supported hundreds of local jobs through direct employment and contracts with Victorian businesses, boosting economic development in the North East region and improving vital transport connectivity.
Frequently Asked Questions (FAQ)
When was the North East Rail Line upgrade completed?
The North East Rail Line upgrade project was officially completed and became fully operational in March 2021, delivering improved journey times and reliability for passengers.
Who were the main contractors for the North East Rail Line upgrade?
The primary contractor for the infrastructure works was John Holland. Other key organizations included Bombardier Transportation, which manufactured the new VLocity trains, and the Australian Rail Track Corporation (ARTC), which manages the track infrastructure.