Australia’s Queensland and New South Wales (NSW) state governments have approved a $900m project to construct a new rail line to ease freight traffic congestion on their highways.

The 340km Border Railway will connect Moree in north-west NSW to Toowoomba in Queensland’s Brisbane and is expected to be built by 2014.

The open access standard gauge railway is expected to carry 14 million tonnes of intermodal and bulk freight as well as improve freight transit times between Victoria, NSW and Queensland.

Planning work for the project is expected to begin shortly.