The Ballarat cyclist is just six seconds behind leader Ben Grenda from Tasmania.

Shaw (Virgin Blue-RBS Morgans) began Thursday’s stage three the day in second position - seven seconds behind Grenda.

Although dropping four placings, he was able to marginally improve his standing with a fifth in a bunch finish in the hilly 134km stage.

The Ballarat contingent also features Damien Turner (Bass Coast Shire), who is 23 seconds behind the leader, and Jay Bourke (Search2Retain-Myteam2), 36 minutes, 7 seconds down.

Rhys Gillett (Virgin Blue RBS Morgan) began the five-day tour, but withdrew in stage two on Thursday after struggling in the opening stage.

On Friday, the peloton will ride a 39km criterium at Newborough for stage four and then an 85km road race from Morwell to Maffra for stage five.

Stage three

1. Rico Rogers (Budget Forklifts) 3:20:07

2. Daniel McConnell (Bass Coast Shire) st

3. Kane Walker (Apollo Bicycles) st

4. Lachlan Norris (Drapac) st

5. Pat Shaw (Virgin Blue-RBS Morgans) st

General classification

1. Ben Grenda (Genesys Wealth Advisers) 5:42:38

2. Cameron Jennings (Budget Forklifts) +0.01

3. Pat Lane (Jayco Skins) st

4. Rico Rogers (Budget Forklifts) st

5. Joseph Lewis (Drapac) +0.04

6. Pat Shaw (Virgin Blue-RBS Morgans) +0.06