The city's road and rail links with Sydney, Melbourne and Brisbane will be upgraded to cope with a predicted doubling of road freight movements and a 40 per cent increase in passenger traffic by 2024.

Under the Auslink plan, unveiled by deputy prime minister John Anderson yesterday, the Federal Government will spend billions of dollars on a massive upgrade of Australia's east coast road and rail systems.

Mr Anderson said Auslink was Australia's first national land transport plan.

Under the plan more than $100 million will be spent on the inland transport link between Melbourne and Brisbane which includes the Newell Highway.

The plan also includes an upgrading of the Sydney to Dubbo road link along the Mitchell and Great Western highways and the Sydney/Melbourne to Dubbo rail link via Parkes.

That rail link will form part of a proposed inland rail route from Melbourne to Brisbane via Cootamundra, Parkes, Dubbo, Werris Creek and Boggabilla which is likely to be constructed by the private sector.

"A number of private sector consortiums have proposed building the route," Mr Anderson said yesterday.

The rail investment package will dramatically increase the proportion of freight carried by rail, particularly between Melbourne and Brisbane.

The new inland rail link and a plan to create a dual carriageway on the Hume and Pacific highways between Melbourne and Brisbane is expected to reduce road traffic on the Newell Highway.

Mr Anderson said the Government was determined to meet the long-term transport challenges facing Australia by building infrastructure projects of lasting benefit.

"Our forecasters predict that the amount of freight on our roads will double over the next 20 years," he said.

"Total passenger travel is expected to rise by 40 per cent.

"The old approach to planning and funding our roads and railways will not be able to cope.

"From now on the Government will fund projects on the transport corridors that have the greatest importance for Australia's long-term future whether the projects involve road, rail, new technology or intermodal freight connections to out-ports and airports."

Melbourne, Sydney and Brisbane will be linked by four-lane highways within 12 years .

Spending on land transport will increase by $3.6 billion, and include upgrading the Hume Highway in NSW and the Pacific Highway in NSW and Queensland by 2016, in partnership with the states.

Mr Anderson said the plan would include a $1.8 billion investment in railways over five years, including $872 million on east coast railways already announced by the Australian Rail Track Corporation (ARTC).

He said the state-national funding divide for roads had hindered development of the rail network and meant the road system was much more modern than the rail system.

More than 80 per cent of freight between the west and east coasts was carried by rail compared with just 15 per cent between Melbourne and Brisbane and 10 per cent between Melbourne and Sydney.

"That's why ... real emphasis needs to go on restoring rail on this corridor (Melbourne to Brisbane)," he said.

Many proposals would require matching contributions from state and territory governments.

State roads minister Carl Scully said there was significant funding for the Pacific Highway between Sydney and Brisbane under the announcement.

While he welcomed the extra funding, Mr Scully implied the $11.8 billion program, of which NSW will receive $2.4 billion, was a vote grab in the lead up to the election.

The minister also said that maintenance programs appeared to be underfunded in favour of big capital works, which were more politically appealing.