Included in the announcement is a continuing commitment that at least 50% of trains procured in the State will be manufactured in Australia.
The announcement will provide a pipeline of work for local manufacturers, recognising one of the major pillars of Ai Group's advocacy to Government.
"A pipeline of work will engender confidence and encourage investment," Ai Group Victoria Branch Head, Tim Piper, said.
According to Mr Piper, the announcement will be a fillip to train manufacturers, to those who supply to manufacturers and to thousands of employees who rely on the industry for their jobs.
"The Australian Industry Group has advocated for more than a decade to have the Victorian Government recognise the value to the economy of purchasing trains made locally.
"We congratulate the Government on the support this will provide, especially to the train industry and its suppliers but also to the general economy," Mr Piper said.
Further comment: Tim Piper 0411 430 301