By the 1930s, the station was struggling to cope with the patronage. The 1940 Ashworth Improvement Plan recommended that it be rebuilt, but funding problems during World War II prevented that from happening. The station had also deteriorated to the point that it was condemned by the local council, and work began in the 1950s on a replacement, as part of Operation Phoenix, the postwar rebuilding of Victorian Railways. However, it was not until 26 March 1960 that the present station was completed. Located slightly west of the previous station, the bridges at each end of the station, across Punt Road and Swan Street, were also rebuilt to accommodate the ten tracks. For a time, platforms at both the old and new stations were used, before the original station was closed and demolished.