The Australian Government has announced a A$5bn ($3.89bn) investment to build the Melbourne Airport Rail Link in the state of Victoria.

Announcing the decision, the Australian Prime Minster Malcolm Turnbull said that the Victorian Government is expected to make an equal contribution towards this project.

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The planned rail link will connect the central business district (CBD) of the city to the airport.

“The project is also expected to create thousands of jobs and boost the Victorian economy.”

After completion, the rail link is expected to reduce traffic congestion on the Tullamarine Freeway, one of the busiest roads in the state serving more than 210,000 vehicles per day.

The link will also ease traffic on Calder freeway, which is used by airport traffic.

Besides reducing congestion, the project is also expected to create thousands of jobs and boost the Victorian economy.

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Currently, there are multiple proposed routes for this airport rail link, which involve underground, overground and combined solutions.

The business case process, initiated as part of the 2017-18 Budget, will help to determine the ideal route, mode of transport and the overall cost of the project.

The rail connection to the Melbourne Airport will also provide additional benefits to the state depending on the final route and designs. It will enhance railway connectivity to the north and west of Melbourne, provide railway access to the north and west sides of the airport and facilitate the development of new rail stations between the city and airport.

The country’s other key airports, such as Sydney and Brisbane, are already connected to the city by rail, while the airport rail link in Perth currently under construction.