Australia's Victorian state to upgrade Melbourne's public transport system

The Australian Victorian state government has announced that 1.56 billion U.S. dollars would be allocated in an effort to "transform" Melbourne's public transport system into one of the best in the world.

Premier Daniel Andrews released details of the plan on Monday, which will result in Melbourne taking delivery of 100 new high capacity trains, up to 100 new trams, as well as more trains for regional Victoria over the next 10 years.

Andrews said the first order of 20 trams and 42 trains was being made immediately.

"We're placing an order today. It's the biggest order that's ever been placed," he said.

While creating a world-class public transport system will cost taxpayers, Andrews said that it would also secure local jobs for at least a decade.

"Victoria is the only state that makes trams and trains. We want to see these industries grow and employ more people, which is why we're investing strongly," he said in a statement.

"This 2 billion dollars (AUD) investment in new trams, trains and jobs is part of our plan to transform Victoria's public transport system and create local jobs, and we're getting on with it," said Andrews, adding "This will enable companies to invest in facilities, in new technology and in workers, sustaining high- skill manufacturing in Victoria. Investing in trains and trams will also provide education and training opportunities."

Public Transport Minister Jacinta Allan said that Melbourne's growing population required a world-class public transport system, and the upgrades would serve the city for decades.

"The number of people using our public transport system is growing twice as fast as our population. Without this critical investment and a long-term plan for rolling stock, our network would grind to a halt," she said.

She said that both the public and industry would benefit from the plan.

"Our investment today is a key part of the government's plan for high-frequency public transport and high-skilled manufacturing in Victoria."

The announcement was made as part of the Victorian state budget which is set to be formally announced on Tuesday.