The funding is in addition to the $300 million previously committed by the Commonwealth and will allow for land acquisition along the rail corridor, which includes the Moree Plains and Narrabri shires, and further pre-construction works.

Cr Price is the deputy chairwoman of the Melbourne to Brisbane Inland Rail Alliance (MBIRA) and congratulated the federal government for its “strong commitment” to the project, saying it was vital to the agricultural sector.

“Aside from improving the nation’s competitiveness, a highly efficient inland railway is a game-changer for regional Australia and particularly agriculture,” she said.

“Efficient rail access opens a range of opportunities for the regions, and would increase competitiveness of agriculture and open up our export markets to the world.”

Cr Price said the funding allocated in the budget provided confidence to the private sector the Inland Rail was a certainty, “therefore, allowing for strategic investments along the route”. 

“With interest rates at record lows, and the prediction that freight volumes will double over the next 20 years, the opening up of international markets and production in regional areas set to grow significantly by 2031, now is the perfect time for investment in this nation-building project,” she said.

The government had also given its strongest indication, Cr Price said, the final delivery and funding of the project would be determined by market testing, with $3.8 million allocated in next year’s budget to examine opportunities to optimise private sector involvement.

The project is expected to cost close to $11 billion, but the alliance has long argued the net gain would more than compensate for the massive outlay.

Last year, the Inland Rail Implementation Group handed to the federal government a comprehensive business case for the project, which is being assessed by Infrastructure Australia. 

It indicated a boost to the Australian economy of $16 billion and 16,000 direct jobs created during the 10-year construction period, with a further 700 jobs created upon operation.

NSW Farmers’ president Derek Schoen said the new funding was welcome news and he looked forward to discussions on how the $3.8 million allocated to market testing for private sector funding would speed up the build.

“Our members tell us that they want an open-access inland rail that delivers real competition and lower transport prices,” he said.

“The government must ensure that its Public Private Partnership proposals deliver for farmers.”