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A decision on when Wodonga's rail bypass will go ahead is expected within two months after rail companies involved in the project agreed to work together.
Wodonga City Council has been calling for the Government and rail companies to agree on a plan to remove the line from the city centre to make way for future expansion.
Victorian Transport Minister Peter Batchelor says a recent agreement between Pacific National and the Australian Rail Track Corporation has paved the way for plans to be drawn up.
He says the two companies are still in disagreement about track standardisation south of Wodonga, but can now move forward on the bypass.
"They have agreed ... to shut their eyes to their argument to the south of Wodonga and leave that behind, that will still remain as a problem, but let's get on with the bits that we do agree about.
Meanwhile, the State Member for Benambra, Tony Plowman, says he cannot understand why the Minister will not announce a start date.
"They are going ahead with the engineering design work which they wouldn't be doing unless they are committed to this project, I think the Minister is holding off the announcement for political achievement," he said.
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