The Victorian government will remove a level crossing described by Premier Denis Napthine as Melbourne’s most dangerous.

By 2017 the Main Road crossing at St Albans will be converted to a rail underpass in a project worth more than $200 million that will include the re-construction of St Albans railway station and a new bus interchange, station car park and pedestrian overpass.

The coalition promised to remove the crossing before the 2010 state election.

It has completed or is constructing 23 level crossing grade separations.

“St Albans is undoubtedly the most dangerous level crossing in Melbourne,” Dr Napthine told reporters.

“Tragically there have been fatalities here in 2007 and again in 2012 and there have been 39 near misses since 2006.

Dr Napthine said 20,000 cars a day use the crossing, about 2500 pedestrians cross it at peak times and the boom gates come down for 40 minutes every two hours on weekdays.

The federal government has contributed $151 million to the project.

Transport Minister Terry Mulder said the state’s share would be funded from savings it has made on the $4 billion regional rail project.

Victorian Labor has pledged to remove 50 level crossings if elected in November.