The South Australian government will commit $8 million to build a new train station in Adelaide's south in Tuesday's state budget.

The Tonsley railway station will be completely scrapped at the end of the month before it is rebuilt in a new location to accommodate a $125 million line extension to Flinders University and surrounding biomedical precinct.

Transport Minister Stephan Knoll announced the new plan today, fulfilling an election pledge to consult the community on the station's new location and what will replace the old site.

The Tonsley railway station will be completely scrapped at the end of the month before it is rebuilt in a new location to accommodate a $125 million line extension to Flinders University and surrounding biomedical precinct. (9News)

"The people engaging in that consultation will now have confidence that there is money on the table," Mr Knoll said.

The Flinders Link project, jointly-funded with the federal government, was initially supposed to cost $86 million until it blew out to $125 million.

It is expected to be completed in the second half of next year, but the new railway station will not be built until community consultation has concluded.

"The best outcome would be that we can include as part of the Flinders Link extension project," Mr Knoll told reporters.

Earlier today, Australia's peak civil construction body called for a raft of infrastructure projects in SA to stimulate the sector.

The Civil Contractors Federation's suggested a 10-step action plan, which includes giving every council $3 million for infrastructure projects, upgrading up to 350 level crossings and duplicating one of the state's most notorious stretches of road, the Augusta Highway.

A supplied render shows a proposed $8 million new Tonsley Railway Station in Adelaide's south to accommodate the Flinders Link project. (PR IMAGE)

CCF SA boss Phil Sutherland hopes to see more spending in the sector when the state budget is handed down.

"The SA economy is slowing and major infrastructure projects are entering their final stages. Job losses are inevitable," he said.

While Mr Sutherland acknowledged the state and federal governments' existing funding pledges for new projects in SA, the CCF SA believes they are taking too long to come to the market.

"Of the 30 odd projects funded in the 2018 (budget), only a handful were shovel ready and only a few have reached the construction phase," Mr Sutherland said.