Heritage Victoria has advised early works at the Lydiard Street crossing can get under way, bringing the reopening of the street one step closer.
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Public Transport Minister Ben Carroll said in a statement "early works", including non-destructive drilling, can now begin.
"Crews will commence investigative works on the signalling system, and we'll have more to say soon," he said.
An exact date for when works begin was not supplied.
A final design for the crossing is being developed, with an application submitted to Heritage Victoria for a temporary reopening solution.
The crossing was closed 370 days ago, on May 30, 2020, when a train ran through the southern heritage-style swing gates due to a brake failure.
The incident is still under investigation by the Australian Transport Safety Bureau, with a final report expected to be released by the end of the year.
The state government committed $10.5 million to reopening the street and installing boom gates in this year's state budget, announcing the funding almost 12 months to the day early last month.
The temporary solution, which will mean the street can reopen to vehicles, will involve half boom barriers connected to the older manual signalling system.
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When the final design is completed and approved, it will be shared with the community - the signalling will also be replaced with modern technology.
It's expected an interim solution will be completed in September.
The state government has repeatedly said the "upgrade will pay tribute to the rich history of Ballarat".
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