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There will be a new centre for rail freight in the Goulburn Murray region by the end of the year.
Work has started on the road and rail hub at Ettamogah, north of Albury.
Developer Colin Rees says the rail component will link into the main Sydney to Melbourne freight line and will be operating by Christmas.
He says it will give local business the option of using the rail system, which they have not had before.
"It hasn't always been an area that is user friendly, but we've certainly got that high in our sights in helping others to look at rail as an option," he said.
"I think that certainly road will continue to play a major role but rail can certainly do more than it's currently doing that's for sure."
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