Delays experienced by passenger trains from freight waiting to access the intermodal hub have been eliminated with rail operators having the ability to move up to 1.8km freight trains off the main south rail line while being loaded.

The siding expansion measuring about 4km has been jointly bankrolled by the NSW and federal governments with Acting Prime Minister and federal transport and infrastructure minister Michael McCormack at Ettamogah for the official opening yesterday.

NSW initially chipped in $7.6 million and the federal government followed up with $2.6 million in last year's budget.

The Rees' family established the Ettamogah hub in 2009.

"We did most of our shunting off the main line, that can be an issue, but I can say we never had one thank God," founder Colin Rees said.

"Going forward with Inland Rail it couldn't have happened at a better time.

"It's going to make us that much more fluent when it comes to running trains.

"It's safer operation, it's smoother, we will get the benefits over time, there is no doubt about that."

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Albury Council is also banking on the siding extension completion and an upgrade to full-interchange status of the Davey Road crossover will boost further investment in its Nexus industrial hub.

Mr McCormack praised the Rees family's foresight in establishing the hub.

"It's a red letter day for the Rees family, a proud day for Kellie, third generation in the family transport business getting things done," he said.

"What we see here today is collaboration between the Rees family, between Albury Council, between the NSW Coalition state government and the federal Liberal-Nationals government.

"Getting things done, building transport corridors, making sure Inland Rail realises its potential."

Twenty two jobs were created in the siding construction.

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