The federal government has committed $205.7 million for heavy duty upgrades of the Newell Highway near Moree and Narrabri in the 2020 federal budget, set to be announced on Tuesday, as well as a further $60 million for overtaking lanes between Tocumwal and Goondiwindi.

The heavy duty pavement upgrades will be undertaken along eight sections of the Newell Highway - five between Narrabri and Moree, and three north of Moree.

Meanwhile, 45 kilometres of new overtaking lanes will be constructed on the Newell Highway, between Tocumwal and Goondiwindi.

Federal Member for Parkes Mark Coulton said both projects will reduce travel times and improve freight productivity and safety for all road users.

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"I'm very pleased this government is investing in high-priority infrastructure projects in the North West that will ensure people in our community get home sooner and safer, while also delivering more jobs locally," he said.

"The investment shows the government is backing freight productivity and road safety in the North West, and is helping the region to take advantage of the benefits of Inland Rail."

Meanwhile, the government is also investing $7.8 million in the Northern NSW Inland Port in Narrabri.

"This involves the construction of an 1800-metre rail siding with slip road infrastructure to facilitate rail loading and storage, maximising the major investment opportunities that Inland Rail will present for our region," Mr Coulton said.

The announcement comes as part of a $2.7 billion Australian government investment into New South Wales transport infrastructure to boost the local economy, make roads safer and create thousands of new jobs as part of the government's COVID-19 economic recovery plan.