New Victorian Transport Policy Aims to Boost Regional Connectivity, With Mixed Outcomes for Bendigo

Victoria's latest transport policy review, released in early July 2026, outlines significant changes designed to enhance public and freight transport across the state, including regional hubs like Bendigo. The framework targets improvements in road upgrades, train frequency, and sustainable transport options, affecting commuters, freight operators, and local businesses in and around Bendigo.

The timing coincides with rising population growth in regional centres and increasing economic activity in the Bendigo region, driven partly by expansions at La Trobe University's local campus and health infrastructure investments at Bendigo Health. These developments underscore the need for improved transport links to support job access, student commuting, and health service connectivity. Policymakers have cited the goal of reducing regional travel times and supporting economic resilience in non-metropolitan Victoria.

Implications for Bendigo Residents

The policy promises several transport enhancements directly relevant to Bendigo: a projected increase in V/Line train services from six to ten daily trips between Bendigo and Melbourne by 2029, upgrades to rail infrastructure to support higher speeds, and expanded bus routes linking suburban areas to key education and health precincts. Residents commuting to Melbourne for work or study may see shorter travel times, while local freight companies could benefit from improved road freight corridors outlined in the regional transport plan.

However, comparisons with other Victorian regional centres reveal mixed outcomes. For instance, Geelong and Ballarat are set to receive more frequent regional train services and light rail investments, largely due to higher population densities and stronger political advocacy, as indicated in Victoria's 2026-27 Budget paper 3. Bendigo's freight infrastructure upgrades remain focused on maintenance rather than significant expansion, which some local logistics operators say limits potential economic growth.

Budget Commitments and Future Developments

The 2026-27 Victorian Budget allocates $120 million towards regional rail upgrades statewide, with approximately $18 million dedicated to Bendigo's rail line improvements. This budget line supports track duplications and signalling upgrades aiming to improve punctuality and safety. Additionally, the government has earmarked $15 million for enhancing bus networks in Bendigo, part of a wider $75 million transport services boost across regional Victoria.

Policy documents forecast these investments will reduce average commute times for Bendigo residents by up to 12 minutes by 2030 and support an estimated 1,200 additional jobs in transport and related sectors locally. The government says ongoing community consultations will guide the rollout of bus route changes later this year, while further planning will explore potential light rail options for the broader Loddon Campaspe region.

Bendigo residents can expect staged implementation of these transport enhancements, with the immediate focus on rail timetabling adjustments and bus infrastructure upgrades. Long-term proposals relating to freight and light rail remain in exploratory phases and subject to further feasibility studies and budget prioritisation.