The Riverina Intermodal Freight and Logistics Hub has been granted $14.4 million in state government funding, only days after Wagga City Council announced an agreement with a private partner.

NSW Premier Gladys Berejiklian will on Tuesday announced the grant, which will pay for a 5.8-kilometre rail siding to service the main terminal at the planned Bomen hub and provide a connection to the main southern line.

“This announcement means more jobs and more investment for Wagga,” Ms Berejiklian said.

Council last week announced that Visy Logistics had signed an agreement to pay for – and later run – a freight terminal. The project is expected to cost about $5 million, with construction expected to start late in 2019.

A separate application by council for $21 million in government funding for an industrial subdivision has yet to be finalised.

At a special meeting earlier this month, councillors had resolved to spend $333,000 to secure the $35m in government cash.

General manager Peter Thompson has described the RiFL Hub as a “transformative piece of infrastructure” for Wagga and the wider region.

Wagga mayor Greg Conkey described the RiFL Hub as vital for the region.

“This is a great outcome for Wagga. We are thrilled that the intermodal is moving forward,” Councillor Conkey said.

“This is an important investment that will drive jobs and investment. This announcement is the result of the NSW Government and council working together and planning for the long term.”

Sean Richards of Visy Logistics has described the Riverina as being of “significant importance” to the company.

“As such, Visy Logistics has already commenced with expanded operations and will continue to do so,” he said.

“RiFL will provide a platform for Visy Logistics to provide greater and extended supply logistics services – warehousing, local transport, linehaul transport, customs broking, clearing & forwarding and shipping – within the region, as well as into and out of the region.”

In 2017, the $35 million Bomen enabling roads project – which provides better access to the Bomen estate and to Olympic and Sturt highways – was completed.