Victoria has won its $1.4 billion spat with Canberra over its reward for selling the Port of Melbourne lease, with money now flowing to regional rail upgrades.

The Turnbull government has committed to pumping $1.42 billion into regional rail and the Andrews government will tip $150 million into the fund. The mammoth project will revamp the Ballarat and Gippsland lines and provide small upgrades to six other regional lines. “It is going to make an enormous difference…