A $60.4 million upgrade to the railway line between Junee and Griffith is underway to improve speeds across 174 kilometres of track.
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The upgrades, which will include re-railing parts of the track, are expected to create about 100 jobs and take over 200,000 tonnes of freight off the roads.
Trains carrying up to 25 tonne axle loads will be able to use the track at speeds increasing from 50 to 80 kilometres an hour.
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The project is expected to be complete just before Christmas.
NSW Transport South Region director Sam Knight said the upgrades came at a great time for farmers.
"We've had an amazing agricultural season and this will mean some of that produce can go on rail and some farmers can reduce their freight costs by using rail," Ms Knight said.
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