Victorian Public Transport Minister Ben Carroll visited Kilmore East where enabling works have started for the electronically operated signalling, which will be supported by modern telecommunications systems.
The Victorian Government is funding the $9.4 million project, which will support the local economy with a number of contractors involved in its delivery.
UGL, Siemens and Integrated Rail Engineering Services are designing the signalling system which includes complex connections into the metropolitan system and existing V/Line signalling.
All Systems Contractors will complete the construction while signalling installation works will be undertaken by V/Line signalling engineers.
Train signalling systems are required on all rail tracks to inform drivers when it is safe to proceed into the next section of track.
The new signalling will control trains between the end of the metropolitan system, north of Craigieburn and Dysart, where the existing automated signalling system for Seymour station starts.
Works will include installation of new axle counters, track circuits, LED signals and a train control system to detect the location of trains and advise drivers accordingly, producing an automated system that improves safety for passengers by introducing fail-safe train detection.
The works will also replace the antiquated manual double line block signalling with an automated system, and remove the aerial power and telegraph wires, which have been repeatedly subject to theft and vandalism.
During the works, V/Line will also complete more than $7 million in track improvements while coaches replace Seymour and Shepparton line trains between Friday, April 22, and Sunday, May 8.
Works include replacing more than 20km of rail between Wallan and Broadford.