Council welcomes funding for long-awaited Leongatha truck route
Victorian Budget allocates planning funds to tackle congestion at South Gippsland Highway, Bass Highway and Strzelecki Highway intersection.
A long-running push to get heavy trucks out of the heart of Leongatha has taken a step forward with state budget funding for the planning and design of Stage 2 of the town's Heavy Vehicle Alternate Route.
South Gippsland Shire Council has been campaigning for the project for years, with the second stage formally backed by One Gippsland in its Gippsland Freight Master Plan and the subject of a parliamentary petition tabled in 2022 calling on the state to fund the work.
The funding confirmed in last Tuesday's 2026-27 Victorian Budget will allow the Infrastructure Delivery Authority to carry out the technical studies and design work needed to address congestion and safety issues at the intersection of the South Gippsland Highway, Bass Highway and Strzelecki Highway in Leongatha.
Stage 1 of the project was completed back in 2016 and pulled the bulk of heavy vehicle traffic out of the town centre, opening the way for streetscape improvements along Bair Street.
Stage 2 has been on the wish list ever since.
South Gippsland Shire Mayor Cr Nathan Hersey said the funding was a welcome result for the local community.
"This intersection has been highlighted as an issue of importance through our ongoing advocacy and is supported by One Gippsland and our regional partners," Cr Hersey said.
"The planning will help ensure the intersection is fit for purpose for all road users, while placing a strong focus on the safe and efficient movement of heavy vehicles.
"Reliable truck access is critical to supporting our region's established industries including agriculture, the Regional Livestock Exchange, and will assist growing and evolving sectors including offshore wind and the oil and gas decommissioning, all of which underpin jobs and economic activity across South Gippsland."
The Leongatha funding forms part of $102.6 million committed to road projects statewide, with $73.4 million going to regional areas.
Planning and design funding for the Strzelecki Highway between Mirboo North and Leongatha was also confirmed, along with new traffic signals at Trafalgar.
The budget set aside $1.04 billion to rebuild, repair and resurface roads across Victoria, with 70 per cent of that going to regional Victoria.
State Eastern Victoria MLC Tom McIntosh said the budget delivered for local families.
"This Budget ensures families have the high-quality support they deserve close to home, while easing everyday cost of living pressures with free public transport and reduced rego," Mr McIntosh said.
Leongatha is one of South Gippsland's biggest service centres and contributes around $1.2 billion a year to the regional economy.
