Mr Barilaro joined with Wagga mayor Greg Conkey and independent MP Joe McGirr on Tuesday morning to turn the first sods with Indigenous digging sticks at the future site of a railway siding and terminal at Bomen.

"This is a huge investment between the state government, the council and Visy to change the shape of infrastructure, logistics and the type of businesses we are going to have here in Wagga," Mr Barilaro said.

The state government has contributed $43.7 million towards the project with the remaining funds coming from Wagga City Council and Visy Logistics, which is a commercial partner in the hub, also known as RiFL.

Preliminary works have already started at the site, located north of the Byrnes and East Bomen roads roundabout., which will see a 4.9-kilometre master rail siding and container transfer terminal when completed.

Cr Conkey said the ceremony was a "historic day" and an "exciting development" for Wagga.

"This goes back to 2009 when we came up with the master plan for [Bomen]. In 2017, we completed $35 million worth of enabling roads thanks to the federal and state governments and the council," he said.

"There is an expression 'build it and they will come' and that is what has happened here.

"It was a bit of a gamble in those days but it was a calculated gamble because we knew if we opened up this industrial estate, there would be a lot of interest shown in this area...it will be an economic driver for this city for generations to come."

Mr Barilaro praised the council for having "a vision beyond the term of any mayor or election cycle".

RiFL was designed to transfer freight from road to rail transport in conjunction with the federal government's Inland Rail project between Melbourne and Brisbane, as well as the Special Activation Precinct at Bomen to encourage new industrial developments.

Dr McGirr said 2021 was "going to be the year that we get back on our feet" after bushfires and COVID-19.

"Who would have thought that it would be regional NSW leading the recovery?" he said.

"But thanks to the projects and the vision of the council and the government, particularly in regards to this inland port, we have the mechanism to drive that recovery."

Wiradjuri elder Uncle James Ingram and knowledge holder Peter Ingram performed a smoking ceremony to welcome guests.