The Australian Government will invest A$996m ($890.6 i) in 2010-11 to develop rail freight networks.
Upgrade works are expected to improve the rail capacity along major city rail corridors, according to bigpondnews.com.
The plan intends to increase movement of freight by rail, lower travel times and improve productivity.
The federal government has also allocated $71m to improve an intermodal terminal precinct in Sydney.
Australia is planning to spend more than $5.6bn over the next decade on infrastructure development.