The Princes Highway corridor strategy, which has been in the pipeline for 12 months, flagged a need for additional passing lanes, mostly on sections east of Warrnambool and west of Port Fairy.

It also highlighted the need for resurfacing between Colac and Warrnambool, Warrnambool and Tower Hill and Portland and the South Australian border.

Princes Highway West Action Alliance spokesman Trev Greenberger welcomed the strategy, which he said included priorities the alliance had advocated for.

"My only frustration is that it has taken so long to get here, and there is not a lot in the document about how quickly this is going to happen," Mr Greenberger said.

Wannon MP Dan Tehan said the strategy now gave "no excuse" to the state government to delay identifying how it planned to use a $60 million federal commitment for the road between Warrnambool and Port Fairy.

The state government has sidestepped calls to commence those works or contribute funding, previously stating it was waiting for the corridor strategy to "identify the most appropriate upgrade opportunities".

The state government now says it is continuing to consult with the federal government on the recommendations in the corridor strategy.

The strategy flags upgrades for the entire length of the highway, from Sydney to Adelaide, but Mr Tehan said planning in the south-west now lagged behind that in other states.

"We can clearly see that in New South Wales and South Australia the work has been done to identify specific areas that need work, what we need is greater engagement from the Victorian state government," he said.

"We have asked and every other state government has been prepared to do this. They put in a minimum of 20 per cent. But we've also made it very clear, if they haven't got the money now they can front end our contribution."

The Warrnambool City and Moyne Shire councils last month unveiled a plan to duplicate a four-kilometre stretch of the highway between Illowa and the Southern Cross road, but Mr Greenberger said the councils were yet to discuss this with the state government. "We haven't been able to have a meeting or a discussion with them yet," he said.

Mr Greenberger said a combination of ageing infrastructure, haulage, high rainfall and long-term under investment had left the highway in poor condition.

"They have been left in a state of disrepair that now is going to take a lot of resource to recover from," he said.

Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.