The New South Wales (NSW) Government in Australia has allocated A$3.3bn ($3.29bn) for the North West Rail Link and A$1.4bn ($1.39bn) for the South West Rail Link, as part of its 2012-13 budget announcement which includes A$9.8bn ($9.77bn) for public transport.
From a total bidget of A$9.8bn ($9.77bn) allocated to public transport, the government will spend A$360m ($359m) to fund preparations for the North West Rail Link, and A$397m ($396m) for construction on the South West Rail Link.
A$116m ($115.7m) has also been set aside to begin construction of the Inner West Light Rail Extension from Lilyfield to Dulwich Hill.
The Australasian Railway Association (ARA) CEO Bryan Nye said the NSW government through its budget announcement is recognising the importance of an efficient and effective rail network.
"The rail industry is strongly supportive and encouraged by this investment," Nye added.
The NSW government will spend A$84.5m ($84.26m) for the Northern Sydney Freight Corridor Program, A$127m ($126.6m) on the purchase and roll out of new train sets, and A$330m ($329.1m) on maintenance activities across metropolitan and regional networks.
"These investments by the NSW Government will provide long term benefits for the people of NSW in terms of where they live, work and how they travel," Nye said.
The recent budget announcement is aimed at providing a more environmentally friendly transport options to meet the increasing demand of population growth and growing traffic congestion.
According to the report, True Value of Rail from ARA, it was found that traffic congestion is costing A$15bn ($14.9bn) to the Australians per year.
"Improvements to the rail network combined with proposed congestion charges will be a significant boost for NSW’s productivity growth," Nye said.