Wallan train derailment: rail corridor alongside deadly site used 'antique' system from 1890

The rail corridor alongside the deadly derailment site north of Melbourne had been running on an ancient, "non-operational" signalling system from the late 1800s, startling revelations from experts reveal.

Shadow Minister for Regional Public Transport Steph Ryan revealed to 9News the broad gauge corridor between Craigieburn and Seymour was the only train line in Australia to be using a system from the 1890s, which broke down more than two years ago.

"I think it is unbelievable that we have - on a major train line in this state - 19th century technology using Morse code that isn't even working," Ms Ryan said.

"That technology is not working and has not been working for the last two-and-a-half years.

"This means this whole section of track between Craigieburn and Seymour is being manually operated and ultimately that puts huge pressure on the signal operators on this line.

"If they get it wrong, there is potential for major safety issues."

The discovery comes after the driver and pilot of the XPT train died in the derailment disaster, which occurred on the neighbouring standard gauge tracks, near Wallan earlier this month.

Investigations into the cause of the disaster remain underway, with the ATSB set to release a preliminary report in about a month, ahead of a final report in 18 months.

Rail Futures Institute president John Hearsch said an interim arrangement had been put in place after the collapse of the operating system on the broad gauge Seymour line, which relied on communication between signallers along the rail corridor.

Mr Hearsch said the 130-year-old technology was in urgent need of a revamp, otherwise it could pose a safety risk.

"It is certainly is antiquated," he said.

"It does rely almost entirely on the human element.

"But none of the authorities involved - the Department of Transport or V/Line - have taken the initiative to bring it up to date and that's something that should have happened quite a long time ago."

The derailment has focused attention on the state of both broad and standard gauge lines in the state's north-east.

The Rail Tram and Bus Union (RTBU) had confirmed the XPT incident occurred on a section of track which was "awaiting maintenance".

Emails sent by the train's driver John Kennedy to his friend and rail enthusiast Clive Williams have since surfaced, expressing concerns over the state of the rail network.

Mr Kennedy detailed a poorly maintained track, signals failure and train faults.

The RTBU previously claimed the safety fears were not new, as some train drivers had refused to ride the route.

Ms Ryan called for greater investment from the Victorian government into regional rail service V/Line, to enable major upgrades to the line.

The federal government has committed more than $230 million of funding to the Melbourne to Wodonga rail line.

But Ms Ryan said the funding did not include an overhaul of the signalling system on the neighbouring Seymour line.

"The fact this signalling system still exists after being in operation for 130 years is quite unbelievable and it demonstrates real neglect," she said.