NSW Labor has promised to commit funding for a study into reducing the four-hour train journey time between Sydney and Canberra if it is elected to government at the state election next March.

Labor leader Luke Foley will announce on Wednesday plans for $5 million for a business case into faster rail, which will be matched by the ACT Chief Minister Andrew Barr.

ACT Chief Minister Andrew Barr has been pushing for faster rail services between Canberra and Sydney. Credit:Sitthixay Ditthavong

Mr Foley said a reduction in journey times by rail between Sydney and Canberra would allow towns such as Goulburn to grow as more people chose to relocate there.

“Faster rail is the obvious answer and Labor is committed to developing the business case so that we can get this long overdue project on the slate,” he said.