The Victorian government has outlined a plan to modernise and boost the freight carrying capacity of rail infrastructure in the state's west.

The Murray Basin Rail Project will cost up to 220 million dollars and will involve replacing hundreds of kilometres of outmoded broad gauge tracks.

A new standard gauge railway line from Mildura to Geelong is expected to be complete by 2018.

Victorian Deputy Premier Peter Ryan says it'll improve transport efficiency and enhance access to the ports of Portland, Geelong and Melbourne for Victorian exports.

Mr Ryan says it'll also support the reintroduction of passenger train services to Mildura and, ultimately, could allow the creation of a new transcontinental link and jump-on point for Victorian trains on the Sydney-to-Perth rail line.

AAP