The Minns government has confirmed $24 million that was promised under the previous state government to fund upgrades to the Gilgandra to Coonamble Rail line.

The Liberal-National Coalition had announced the funding for 96 kilometres of the line in February last year.

The coalition lost power in the 2023 March election, but Labor committed to the project in the 2024-25 budget released on 18 June this year.

Minister for Regional Transport and Roads Jenny Aitchison said the upgrades will allow more produce to be transported throughout the region.

"The upgrade will allow access for heavier trains on the section of track, increasing the gross weight limit from the current 84-tonne maximum to 100 tonnes per wagon," Ms Aitchison said.

"In addition to the increased axle loads, the project will allow freight trains to safely travel at more efficient speeds of up to 50km/h loaded and 80km/h unloaded to increase supply chain efficiency."

"The former government made this announcement just before the election in February 2023 but it is the Minns Labor Government that will provide the investment needed to deliver this critical upgrade with the project currently in the design and planning phase, with construction due to start from 2026."

The end of the branch line at Coonamble

The line will intersect with the yet-to-be-built Inland Rail section in the Gilgandra Shire village of Curban. Gilgandra and Coonamble are part of the Narromine to Narrabri (N2N) section of the 1600-kilometre freight line, which when completed will stretch from Melbourne to Brisbane via regional Victoria, NSW and Queensland.

Gilgandra mayor Doug Batten said the Coonamble-Gilgandra line upgrades will put it on the same axle load as Inland Rail, which will improve interoperability and facilitate trade with other regions.

"We can load a grain train in Gilgandra and put it straight on. It can go up to Curban, it can head to Narrabri, go to Newcastle. It can go south down to Pork Kembla," Cr Batten said.

"There's hundreds of thousands of tonnes of wheat that are put on that Coonamble-Gilgandra line already. I can only see that growing."

The federal government gave the N2N environmental approval in January 2024. The section is still in it's design phase as the Australian Rail Track Corporation, the government company responsible for delivering the project, seeks permissions from landowners to use their properties.

GrainCrop, an international grain transporter that uses the Coonamble-Gilgandra line, said the upgrade will drive local access to other markets.

"We look forward to being involved in the consultation on the detailed designs for the rail line and its junction with Inland Rail, and to seeing these projects progress," a GrainCorp spokesperson said.

"This upgrade will be critical to our ability to fully realise the benefits of the Inland Rail line and to connect growers in the region with key domestic and export markets."

Barwon state MP Roy Butler also welcomed the re-commitment.

"Look, it's good news. I think the reason we're even talking about it is because it's in the budget. The money's there," Mr Butler said.

"Having good freight pathways for produce, especially grain, it's really important that we get it away cheaply. It's more money in the farmer's pocket if the freight cost is lower.

"When you can put more in a car, that means that you've got to pay less in freight."