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The project aims to address ageing infrastructure and modernise air traffic operations at Sacramento International Airport.
A 7.4km rail section between Albion and Keilor East will enter early works before major construction starts in 2028.
The development will feature a hotel, luxury homes, branded residences and apartments.
The $3.3bn project covers more than 47 acres and is expected to deliver at least 5,000 homes.
The $72m scheme will transform a brownfield site with student, affordable housing and community facilities.
