For about 18 months, a federal government pledge of $140 million for the Princes Highway in the south-west has sat untouched waiting for state government to fund its share.

Despite lobbying and pressure from government and business, the state government has refused to commit to the projects, $60 million of which would be used to upgrade a section of the highway at Illowa.

Owen Truss part owner Glenn Owen said he had been forced to change over the type of trailers on the trucks used to transport roof trusses and wall frames to Melbourne to prevent the product getting knocked around.

"We've had to spend money and change trucks over and make it so we can get down there in one piece," Mr Owen said.

"The drivers have to slow down because of the roads. The drivers can do 100km/h but they've got to do 80km/h in some places because it's just too rough. It knocks stuff around.

"It's hard work for the drivers to be on the roads."

Mr Owen said he had to supply a safe workplace for employees, but he had to put them on a road that were not up to standard. "It's ridiculous," he said.

"It would be nice to see some money spent on the road. It is frustrating.

"The state of the roads are just getting worse and worse. We just need that good feeder road to Melbourne."

Mr Owen said work to upgrade the highway "just needs to be done".

Port Fairy Bamstone director Michael Steel said he too just wanted his drivers to be safe on the roads.

Mr Steel said the state of the roads has damaged products being transported on south-west roads, and he often has to pack trucks lighter even though it is not as cost efficient.

"We're competing on a world stage trying to get our product to Melbourne, Sydney, overseas, without breakage and time constraints," he said.

"We deserve good roads. The transport industry spends a fortune keeping their trucks in a roadworthy condition and a lot of the issues they have is caused from the condition of the roads."

He said the roads needed to be made safer not just for transport, but for cars.

"We've spent millions of dollars putting the wire rope systems in regionally, that money would have been far better spent building the roads safer at the other end of the scale," Mr Steel said.

"My mind boggles to see money getting spent on that yet we drive a bit further down the road and you're hanging onto the steering wheel with both hands to try and keep on the road.

"I'd rather have the car drive safe on the road and then worry about wire rope barriers."

Mr Steel said COVID-19 had had a big impact on the region's economy and to fast-track the upgrade would be a great kick-start to the whole region.

He said it wasn't about favouring one side of politics over the other. "We're just saying 'our time has come. We've waited long enough'," he said.

Warrnambool mayor Tony Herbert said the recent elevation of the Princes Highway West to the National Land Transport Network highlighted the road's importance and strengthened its case for a fully funded upgrade.

Cr Herbert said an upgrade would provide the south-west with an ideal opportunity for stimulating the economy to help with the recovery from the impact of COVID-19.

The federal government has committed $60 million for the stretch at Illowa and another $80 million for roads in the far south-west.

He said it was time the Victorian government matched the funding.

He said the project would drive long-term jobs and would e a boost for the visitor economy when it was back on track..

"It would help bring millions of visitors to the Great Ocean Road and west to Portland and beyond," he said.

"It is our region's main priority.

"We have waited a long time. We're a significant part of the Victorian economy. Our region helps feed our nation and creates export goods - we need an efficient conduit to Melbourne and to export ports."

Cr Herbert said an upgraded Princes Highway would get large vehicles off smaller country roads which were not built to carry the traffic weights and volumes they are experiencing.

"Most importantly, the highway would become safer for the region's people and all who visit here," he said.

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