Thousands of Australian steel industry jobs are saved after British billionaire Sanjeev Gupta's Whyalla-based Liberty One Steel won the contract to supply steel for the first section of the massive Inland Rail project.

The deal makes the Australian Rail Track Corporation (ARTC) - the company in charge of constructing the rail - one of Whyalla's biggest customers.

ARTC CEO, John Fullerton says that they will commence the portion of the track from Parkes to Narramine next May, with the first train expected to be running in 2025.

'We plan to commence construction on the 100km stretch of rail by May next year. We've placed an order with Liberty One Steel in Whyalla to supply 15,000 tonnes of steel for track,' Mr. Fullerton told Sky Business.

'We've got about 140 people working in the company and have commenced the design and environmental approval process.'

The project will eventually connect Melbourne to Brisbane.