The costings and economic viability studies are consistent with those of the previous Coalition government.

The Australian Rail Track Corporation (ARTC) estimates that the cost to build will be between $2.8 billion and $3.6 billion, depending on the route chosen.

It is essential that the travelling time from Melbourne to Brisbane be less than 24 hours, so that the Inland Rail can deliver the maximum benefit to freight movers and compete with road transport.

For that reason, the project cost is likely to be near the high end of ARTC estimates.

“This is a project whose time has come,” Mr Truss said. “A rail development of this scope will revitalise regional communities and business in three states and will be a boon to our exporting performance.”

The first stage report conducted by the ARTC which found the inland rail would not make money immediately, should not be used as an excuse by the Federal Labor Government to abandon the project.

It is clear that the inland rail will require government support to become a reality, but not as much as has been provided for other road and rail projects across the nation.

“Just a year ago, Rudd Labor said it was ‘dedicated’ to advancing infrastructure projects like the Inland Rail," Mr Truss said.

“Since then, it has done precious little and even delayed funding for a time to upgrade the existing Parkes to Cootamundra rail line which will eventually form part of the inland rail.

“The ARTC report seems to favour a longer and less direct route than the alignment preferred by the Coalition in government. This is short-sighted.

“However, my view is the project should go ahead in such a way that missing links are built first so that direct services can commence quickly.

"Building a more direct line can come later once the Inland Rail is up and running.

"Annual costs to the taxpayer over the 10 year build time would be very affordable.

“Suggestions that the project should not proceed because it is not viable as a stand-alone commercial entity are ludicrous.

"On that basis, the only infrastructure which would be built in Australia would be a few toll roads in the major capitals.”