The Australian Rail Track Corporation has welcomed $400 million in federal funding for a rail duplication link between Mascot and Botany in Sydney.
Paul Zalai, the director of peak industry body Freight and Trade Alliance, said rail was vital for trade in Port Botany.
"What we have experienced to date has been a reliance on road in the area with much congestion," he said.
"Rail is going to be a very important part for the trade through Port Botany. Not just our metropolitan sectors, but also to best serve the rural sectors of NSW.
"Port Botany has now become the largest port by container volume in Australia. Traditionally Melbourne has had that role."
Prime Minister Malcolm Turnbull, speaking at a press conference near Port Botany, said the rail link would be a vital piece of economic infrastructure and meant less congestion on the nation's roads.
"Every single additional train with containers along this rail line takes 50 trucks off the road," he said.
But Mr Daley said the rail freight project was cancelled by the Federal Government in 2013 and this is the Government "just putting it back in".
However, he welcomed the $50 million injection towards the Western Sydney Airport rail link as a "good start".
NSW residents will also benefit from $200 million road upgrades in the Australian Capital Territory.