A new freight terminal will create thousands of jobs for the region.

The NSW state government will call for tenders from the private sector to design, build and operate an intermodal terminal at Moorebank.

A new freight terminal in Sydney's south-west will take 3,300 trucks off Sydney roads every day and create thousands of jobs for the region.

The Moorebank Intermodal Terminal project will see a rail link constructed from Port Botany to a new freight terminal and warehousing facilities at Moorebank which will enable freight to be more efficiently transported by rail.

In future years, the Moorebank site will also be expanded to include an interstate freight terminal.

Moorebank is the ideal location because of its close proximity to major connecting routes such as the M5, M7 and the Southern Sydney Freight Line, and has been assessed by independent firms KPMG and Greenhill Caliburn as the most appropriate location for an intermodal terminal.

Key to the project is a commitment that it will be open-access, which will ensure the best-value outcome for the project.

An estimated 1,650 full-time jobs will be created during construction, and a further 1,700 people could be employed in the region once the project is up and running, with forecasts suggesting the terminal would see an injection of $135 million a year into the economy of south-western Sydney alone.

Private sector operators for the project will be selected through an open and competitive tender process.

Subject to planning and environmental approvals, the terminal will be open for business in 2017.