The Victorian government looks set to spend $50.3 million to build the new curved pier in St Kilda.
The rebuilt pier will create a curved breakwater as it arcs out into the bay, better protecting the swimming area and penguin colony numbering about 1,400 in 312 nests.
The project will include the creation of a penguin viewing area and tiered seating leading into the water.
The iconic kiosk will be retained to ensure the pier remains a “focus-point for visitors”.
More than 800,000 people visit St Kilda Pier each year and in the height of summer it sees more than 6,000 visitors a day.
The pier’s well-known kiosk was first built in 1904 but was destroyed in an arson attack in 2003. After the fire, the then-Labor government led by Steve Bracks rebuilt the kiosk with the original 20th-century plans.
“This upgrade will give the community more-green space, safer swimming spots, and protect the local penguins,” minister for ports and freight Melissa Horne said.
The Victorian government has also planned a further $27 million towards new separated bike lanes to boost safety for cyclists and pedestrians along St Kilda Road.
A combination of central safety zone bike lanes and Copenhagen-style kerbside bike lanes will be built to increase the number of cyclists along St Kilda Road.
“St Kilda Road is Melbourne’s busiest tram route and one of Melbourne’s busiest bike routes – that’s why these safety upgrades are so vital to separate cyclists from other traffic,” Minister for roads Jaala Pulford said.
Elsewhere, new toilets will be installed, as well as sheltered areas and additional green spaces.
Construction of the new pier looks set to commence in 2020.