The heritage-style display gates at the Humffray Street level crossing have been removed for restoration.
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The gates will be taken to a workshop to be repaired and restored by specialist contractors, according to the Department of Transport.
Work will include replacing weathered wooden parts of the structure with like-for-like wooden beams, while maintaining the existing metal framework.
For years, heritage advocates have called for the gates to be restored before they are damaged further.
Save Our Station's Gerald Jenzen said the swing gates were put on display in about 1993 when boom gates were installed, and hadn't had much maintenance since.
"They were required by Heritage Victoria to remain there as a reminder of what used to happen, of how the crossing used to operate before booms - if you let them get pulled away, why do you keep anything old?" he said.
"The gatehouse is still there, and it's all part of railway infrastructure history."
"They're there to remind us of how the system used to work - we're losing so much of it, so it's important that what we have got is retained."
He said he expects the job of restoring the gates to take about three months.
On Lydiard Street, early work has begun on replacing the heritage-style swing gates with a boom gate to reopen the crossing to traffic - the interim solution is expected to be complete by September.
The southern swing gate, a replica of the original, was destroyed by an out-of-control train in May 2020, and the level crossing has been closed to traffic ever since.
The state government committed $10.2 million to install an interim solution for reopening the road, and upgrade signalling.
A final report into the crash from the Australian Transport Safety Bureau is expected to be released by the end of the year - a preliminary report noted the train's brakes failed, causing the crash.
No one was injured.
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Mr Jenzen said he was keen to hear more about when heritage signal posts at Lydiard Street will be reinstalled following restoration works - the posts were removed in April 2020.
"We were told they were being refurbished and reinstalled and they haven't come back yet," he said.
"We have to keep them to their word."
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