Last week, Wagga City Council announced it had entered into negotiations with railway infrastructure firm Traxion to develop the $54 million facility.

C4W chief executive Chris Fitzpatrick said the announcement marked a big step forward in getting the ball rolling on the hub.

"It is a milestone achievement in a gruelling process to deliver this important rail and road infrastructure to the city of Wagga, the Riverina, the state of NSW and Australia as a whole," he said.

"As a city, we need to welcome Traxion and we look forward to the company becoming an iconic business name in our city's future."

In March, C4W issued a 10-page document urging all levels of government to work together to bring the then-stalled project to fruition.

The document listed four key drivers for the project - economic growth, streamlined freight logistics, improved road and rail safety, along with a reduction in transport costs.

The long-awaited announcement has been welcomed at a federal level and comes more than two years after then-regional development minister Simon Crean announced $14.5 million in federal funding for the project.

Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss said the development, when complete, would encourage a shift from road to rail for freight transport in the region.

"The new freight hub will deliver highly accessible facilities, offer connectivity with most of Australia's major cities and provide good road, rail and air connections," he said.

"In addition to creating long term employment opportunities and addressing existing road and rail safety issues, it will improve import and export services to Port Botany, Port of Melbourne and other ports, thereby helping to reduce the cost of logistics in the supply chain."