Efforts from the community, specifically Better Benalla Rail and its Save our Station campaign, have not been able to have the 1888 structure protected.
Inland Rail program delivery director Ed Walker said it would now include the removal of the signal box in upcoming works.
“Inland Rail acknowledges the decision by the Heritage Council of Victoria not to include the Benalla signal hut in the Victorian Heritage Register,” he said.
“As designs progressed for Inland Rail, it became evident the signal hut would need to be removed because there is insufficient clearance from the rail line for double stacked freight trains, and it conflicts with sight lines for future rail and pedestrian infrastructure.
“We will now seek the necessary approvals, in line with our planning approval conditions, for the removal of the signal hut.
“Inland Rail has commissioned a heritage interpretation plan that presents a range of options to acknowledge the signal hut in the new railway station precinct design.
“Details of the heritage interpretation plan will be shared in the coming weeks and we will seek feedback from the community on how they would like to have the signal hut commemorated in the station precinct.
“We will keep the community informed about the plans for the removal of the signal hut.”
Better Benalla Rail president David Moore said the group did not see the demolition as inevitable and would continue to fight to save it.
“Our understanding is that Victorian Minister for Planning Sonya Kilkenny has to approve any demolition and we’re in the process of communicating with her office as we speak,” he said.
“We’ve got a heritage building which is strongly supported by the community. It has the protection of a local heritage order and it has the support of the National Trust.
“We have two letters from them supporting saving the signal box.
“We’re going to ask the Victorian Government if they intend to let Inland Rail bulldoze one of the last bits of Benalla’s rail heritage.
“And we hope they see sense and help us save it.”