The Victorian Department of Transport and Planning said the project would include reconfiguring the track layout so multiple services could use the yard at the same time, such as the existing services and for the connection of a new rail terminal for Kelly Grains.
The upgrades include additional track to improve movement around the container terminal and longer sidings to make train shunting easier to help reduce congestion and speed up operations in the yard.
GrainCorp rail commercial and contracts manager Alex Donnelly said the long-term impacts would benefit the company.
“We’re very supportive of the proposed Tocumwal yard upgrades,” Mr Donnelly said.
“The current layout causes congestion between the container terminal and the GrainCorp site.
“The planned reconfiguration will ease those conflicts and support longer, more efficient trains — improving the overall flow and reliability of freight in the region.”
He said GrainCorp was working with transport and freight bodies to complete the works.
“We haven’t yet seen detailed construction timelines, so the short-term impacts are unclear,” he said.
“We’re working closely with V/Line and Freight Victoria to ensure the works are well-managed and don’t disrupt grain movements during busy periods like harvest.”
However, the upgrades aren’t the final step in improving freight, with capacity increase at the top of Mr Donelly’s list.
“These upgrades are a strong step forward for Tocumwal,” he said.
“What’s needed next is increased network capacity to move freight between the region and Melbourne, particularly as passenger services grow.
“Without more room on the network, freight risks are being squeezed out.
“Some parts of the freight network still rely on outdated systems that cause delays.
“Delivering committed upgrades is essential to keep freight moving efficiently and reliably.”
A Department of Transport and Planning spokesperson said the plan was a part of a larger set of upgrades.
“The Victorian Government’s $470 million investment since 2020, including $103 million announced in the Victorian Budget 2025-26, have delivered significant regional rail freight upgrades,” the spokesperson said.
“These upgrades across Victoria and southern NSW are benefiting producers and operators, as longer, heavier and faster trains can move more goods for export and domestic customers and take trucks off regional roads.”
Works are expected to begin in early 2026.
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