The 207km Southern Missing Link railway is being overseen by the Surat Basin Rail Consortium, which includes the Australian Transport and Energy Corridor, Industry Funds Management, Queensland Rail, Xstrata Coal and Anglo Coal.

Minister for Infrastructure and Planning Paul Lucas said the project would give greater access to the Surat Basin's 6.3 billion tonnes of coal reserves.

“The Southern Missing Link will mean this region can fulfil its export potential for coal and other possible future mineral and agricultural products," Lucas said.

“A number of large-scale mining and energy projects are proposed over the coming years which could create significant new employment and business opportunities for local communities such as Chinchilla, Miles and Wandoan."

If the project proceeds, Lucas said the construction would create up to 600 jobs over a period of 30 months.

“The proposed rail corridor largely follows existing road reserves, most notably the Leichhardt Highway, Nathan Road and Cracow-Theodore Road, to join existing Queensland Rail lines at Wandoan and Banana," he said.