Transport and Infrastructure Minister Anthony Albanese committed a re-elected Gillard government to a 1700-kilometre rail link stretching from Brisbane to Melbourne through central west NSW.
Funding for the Inland Rail Link would begin in 2014 with $300 million to reserve land and begin planning.
The freight line would not be expected to be built until 2030 when it became economically viable.
Speaking at the Infrastructure Partnerships Australia conference in Melbourne today, Mr Albanese said the route would involve upgrading 430 kilometres of existing track.
The new line is expected to contain 600 kilometres of new tracks and cost $4.7 billion.
The line would run through Albury, Parkes, Moree, Toowoomba and to Brisbane.
Mr Albanese said the line would provide a boost to national economy and help fight climate change.
The route is expected to be 170 kilometres shorter than the current coastal rail route.
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