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$100m joint funding to upgrade local transport network across Melbourne

Written by Monica Gameng | Sep 6, 2025 12:30:00 AM

The Victorian Government and the City of Melbourne are partnering to jointly fund the $100 million Transport Amenity Program, aiming to keep traffic moving and improve local neighbourhoods once West Gate Tunnel opens later this year. 

The program will carry out one of Melbourne’s largest streetscape upgrades in its history. The works will help improve traffic flow and public spaces, while managing the projected changes to traffic when the West Gate Tunnel is up and running. 

Works will commence this month at intersections around Spencer, Dryburgh, Abbotsford, Victoria, Curzon, Rosslyn, Adderley, Lothian and Ireland streets in North and West Melbourne. Not only will the upgrades improve traffic flow, but they will also discourage drivers from using local streets as shortcuts. 

The scope of the upgrades will include new line markings, adjusted traffic signals, restricted turns, road closures and safety bollards. 

“The West Gate Tunnel Project will transform travel in Melbourne, delivering a vital alternative to the West Gate Bridge and better connecting Melbourne’s freeway network,” Minister for Transport Infrastructure Gabrielle Williams said. 

“As we prepare to open the West Gate Tunnel later this year, we are investing across North and West Melbourne to improve traffic flow and keep people moving,” Minister for Roads and Road Safety Melissa Horne said. 

As part of the West Gate Tunnel Project, the new Wurundjeri Way extension is being delivered to give people from the west a new way to get into and around the CBD, bypassing Spencer and King streets. 

The State Government and the City of Melbourne have also agreed to monitor traffic movements for six months after the new tunnel opens. Additionally, community feedback on interim measures will be sought to determine what long-term arrangements are needed as well as what adjustments can be made to help manage traffic. 

Meanwhile, longer-term projects such as progressing the Hawke Street Linear Park and enhancements to pedestrian and cycling connectivity will commence next year once people have adjusted to the new conditions and settled their travel patterns. 

More than $46 million of the Transport Amenity Program funding has been allocated to projects including tram improvement works on William Street and pop-up cycle lanes in La Trobe, Little Collins, Abbotsford and Peel streets. 

The funding also includes a $16 million investment to deliver shared user paths and major streetscape upgrades on Dynon Road and Franklin Street to make it safer for pedestrians and cyclists travelling between North Melbourne and Footscray and further development of the Spencer Street Master Plan. 

“The West Gate Tunnel Project will change how people move around Melbourne – and we’re working to secure the best outcomes for our local community. 

“We’re working closely with the Victorian Government to deliver on what was promised – reducing through-traffic in North and West Melbourne, improving open spaces and creating more welcoming local streetscapes,” City of Melbourne Lord Mayor Nicholas Reece said. 

Source: Premier of Victoria – Media Centre; Infrastructure Magazine