The extension of the Gold Coast light rail line is absolutely essential for economic development, Prime Minister Malcolm Turnbull said.
Mr Turnbull has announced a federal grant of $95 million to link the existing line to the main rail line in the state's southeast in time for the 2018 Commonwealth Games.
He says the project will add billions of dollars of value to the local economy.
"Our cities are the crucibles of innovation, of enterprise - it's where so much of our GDP was created and it's vital that they have the right infrastructure, whether it's telecommunications infrastructure or transport infrastructure like this," Mr Turnbull said.
"Public transport infrastructure is essential, it is good for you - people that use public transport walk more often don't they?"
Mr Turnbull said he is determined to have a focus on infrastructure in his role as Prime Minister.
"I will be an infrastructure Prime Minister, an infrastructure Prime Minister that supports all infrastructure on the basis of its merits.
"There is no reason to be - to discriminate between one mode of transport or another. You need everything. This is an all of the above approach to solving our city's transport."
Federal funding welcomed
Gold Coast Mayor Tom Tate said he welcomed the federal funding, saying public transport has improved his fitness.
"Tom has become much fitter since he started getting the light rail."
The PM also said people meet new people on public transport, like he met Premier Annastacia Palaszczuk earlier that morning, he chuckled.
Ms Palaszczuk said it was refreshing to have a prime minister who was prepared to commit to public transport and who recognised Queensland was a rapidly growing state.
"I intend to work very closely with Malcolm over the coming year to make sure we develop and implement the best for Queensland," she said.
"This is a new era of co-operation."
Mr Tate said it was great all three levels of government were working together to deliver the project in time for the Commonwealth Games.
"How many ways can you say your appreciation to the premier and the prime minister with their vision to see that the Gold Coast is a premier tourist destination."
