Australia’s peak rail body has welcomed almost $3 billion in state government funding for Queensland’s Sunshine Coast rail, saying the project will bring urban renewal, jobs and environmental benefits.

The proposed 38km Direct Sunshine Coast Rail Line is designed to improve the connection  between the Sunshine Coast, Moreton Bay and Brisbane.

It will enable trains to reach speeds of 160km on some sections and will make a trip to Brisbane at least 45 minutes faster than a car, the state government says.

The government on Monday announced an initial $2.75 billion for the first stage of the rail project,  which it hopes will be matched by federal funds so construction can begin by 2032.

The first stage will see a 19 km dual track built from Beerwah to Caloundra, the longest spur line in the south-east passenger network, with second and third stages for the line to extend to Birtinya and then Maroochydore.

A business case has been submitted to Infrastructure Australia for assessment.

Transforming South East Queensland

Transport minister Bart Mellish said the rail line will transform South East Queensland.

“For the first time, residents in the region will have a direct, fast and reliable connection to the South-East,” he said.

“The project will deliver cleaner and greener transport for a more sustainable Brisbane 2032 Olympic and Paralympic Games, and provide a lasting legacy for these communities.”

It will also unlock thousands of homes in the region, including new affordable developments, he said.

The government estimates cost of Stage 1 at between $5.5 billion and $7billion, with final costs to be confirmed at completion of procurement.

Rail industry hoping Commonwealth stumps up funds

Slow rail has been hampering the east coast’s sustainable development, Australasian Railway Association CEO Caroline Wilkie said.

“The ARA welcomes the Queensland Government’s commitment to the direct Sunshine Coast Rail Line,” Ms Wilkie said.

“We look forward to the outcomes of the business case assessment submitted to Infrastructure Australia and are hopeful this will result in additional funding from the Australian Government.”

The line is forecast to take thousands of commuters off the roads in one of Queensland’s fastest growing regions, which is forecast to be home to 600,000 people by 2046.