The Parkes Shire Council, in central west New South Wales, is receiving a surge in inquiries from agricultural businesses wanting to set up shop alongside rail lines, to make the most of the Federal Government's promised inland rail network.

The government has made an initial commitment of $300 million towards the project.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Listen Duration: 4 minutes 22 seconds 4 m 22 s Mayor of Parkes Shire, Ken Keith, reports increased inquiry for business wanting to tap into inland rail ( Skye Manson ) Download 1 MB

The Inland Rail Implementation Group, chaired by former deputy prime minister John Anderson, handed its recommendations on the viability of the rail system to the government this month.

Although the final determination is not expected until next year, industry is getting in early.

Parkes mayor Ken Keith said council had fielded inquiries from a number of abattoirs and containerised grain operators.

"Industry is starting to realise the potential of the inland rail," he said.

"This is going to have a multiplying effect. There is inquiry right along the route now for intermodal hubs and people setting up industries such as abattoirs, where we can value-add on meat products going overseas.

"We can value-add to grain, but adding to containers, or making flour adds different products into the mix. as well as horticultural products that could be exported.

"We are restricted by in-confidence agreements but there has certainly been inquiry.

"There are three or four people that we are talking to at the moment."

Mr Keith said Parkes was not the only council starting to see increased activity.

"I know at Moree has a lot of inquiry and at Narrabri," he said.

"Griffith has just set up an intermodal terminal to link across to the inland rail at Wagga Wagga.

"There is a lot happening in this space. People are starting to realise the opportunities and investment chances they could take by getting in early.

"Overall, I think there is enormous benefit to agriculture.

"There is no reason why we can't bring fuel and fertiliser and a lot of the inputs that agriculture use and storehouse and warehouse them here in western New South Wales and distribute them at a much cheaper rate to farmers."