The federal government has released its delivery plan to build the Inland Rail project, which would take in Parkes, Narromine, Narrabri and Moree, and preliminary work, including surveying and environmental research, is already underway.

Mr Coulton said the project would attract business and other economic benefits to the region.

"I think Dubbo will have huge benefits from this," Mr Coulton said.

"Being in that general corridor, I think the potential for businesses to relocate from cities to that Dubbo, Narromine, Gilgandra area - they'll be able to access, not just Melbourne and Brisbane, but every capital city in Australia for the first time.

"The cost benefit analysis is very good and as the national freight task escalates in Australia that will only get better."

Construction on the 1,700 kilometre project is forecast to take ten years and cost about $10 billion, but Deputy Prime Minister and Minister for Infrastructure Warren Truss said "not building it will cost us more".

Inland Rail is forecast to result in 200,000 fewer truck movements every year, or 161 fewer trucks for every train between Melbourne and Brisbane.

"Inland Rail will complement existing road and railway networks and will dramatically boost productivity," Mr Truss said.

"Without Inland Rail, additional heavy vehicles will be needed to move over two million tonnes of extra freight between Melbourne and Brisbane in 2050."

"I don't think were going see a reduction in the number of trucks, but the forecast growth, if we don't put in an alternative to the Newell Highway we'd have to see a replication of the Newell Highway, with a dual carriageway, which would be much more expensive than the rail route," Mr Coulton said.