Australian federal and state Governments have announced $140m for the removal of Springvale Road level crossing and for a new grade separation in Victoria.

The project, to be funded by $60m from state and $80m from federal government, is expected to tackle congestion and improve safety for drivers in Melbourne’s east.

Victorian Premier John Brumby said around 50,000 vehicles and 218 trains use the Springvale Road level crossing every day.

“By eliminating this level crossing, people living and working in Melbourne’s east can spend less time commuting and more time with family and friends,” Brumby said.

The upgrade is expected to construct new road crossings over the top of the Belgrave and Lilydale rail lanes, separating traffic and trains.

The work on the Springvale Road level crossing project is expected to be completed by early 2010.