The Federal Government has released $25 million for further studies into completing the Maldon to Dombarton rail line linking Port Kembla with the main southern track.

Infrastructure and Transport Minister, Anthony Albanese says the funds will be spent on planning and detailed design work for the 35 kilometres of new track needed to complete the important freight rail line.

Mr Albanese says the project could be shovel ready in time for inclusion in the government's national building program which will come online in 2014 or 15.

The Maldon Dombarton route traverses an easier route than the steep grades on the Moss Vale Unanderra line, especially the torturous section from Robertson to the base of the Illawarra escarpment.

Wollondilly Shire Council Mayor, Col Mitchell has welcomed the news saying it will also take a lot of traffic off the accident prone Picton Road.