Construction giants Thiess have been awarded a $1.1 billion contract to build a rail link covering 12.6 km in Queensland.

Trains are set to travel from Petrie to Redcliffe by the end of 2016 after the announcement of the Moreton Bay Rail Link. The Link is possibly the oldest idea being kicked around Queensland Parliament; it was first proposed (and mooted) way back in 1894.

Local councillors have strongly welcomed the project - to be primarily funded by the Federal Government - it is set to create around 8500 jobs during the years of construction.

The Commonwealth has put up the bulk of the cost, contributing $742 million, Queensland will kick in $300 million plus the land, the council will pay $105 million.

The project has become something of a political hot-potato, with the Queensland Government initially rejecting Canberra's offer on the basis it was not a “genuine 50-50 partnership”, it seems now a balance has been reached.

Federal Labor MP Yvette D'Ath was on site for the announcement, saying: “This community has been waiting some time to see this next milestone happen. There's been a lot of politicians over many years who've talked about this rail line but this is the first Federal Government that has ever committed a dollar to this project.”

Updates on the Moreton Bay Rail Link project are available from the Main Roads website.