The replacement crossing will enable the future movement of B-triple vehicles, when approved, into Grubben Road from the Olympic Highway to access a grain storage facility nearby.

The rail signalling component of the project will be undertaken by Aldridge Signal Infrastructure at a cost of around $1 million with construction of rail track and civil construction work worth almost $670,000 to be carried out by Civilex.

Both companies had to be an approved contractor of Australian Rail Track Corporation.

The Olympic Highway re-alignment for about will be the subject of another contract.

NSW Regional Transport and Roads minister Paul Toole said the project would increase efficiency.

"Relocating the railway crossing will reduce the number of heavy vehicles travelling through Henty's local streets and mean more efficient trips for local farmers moving grain from paddock to the silo," he said.

Farrer MP Sussan Ley said safety issues were also a driving factor in the project.

"The push to relocate this crossing has been a priority due to the number of near-crashes at this location over the years," she said.

Changed traffic conditions will be in place for the safety of workers and motorists including traffic control, lane closures and a reduced speed limit.

Federal, state and local governments have contributed to the project with an overall $7.2 million price tag.