"I've been part of the project team looking into establishing an inland hub since its inception several years ago.
"We actually spoke with Shane Jones about it late last year so to learn it is progressing is great."
Kajavala said it showed the Government's commitment to economic development within the regions and that it was prepared to put "their money where their mouth is" and go ahead with promises made.
He said the establishment of a hub would help the Eastern Bay three-fold.
"It allows for growth in areas away from the port by spreading activity into the regions, it enables other industries to be established to support the hub, and it gets a whole heap of trucks off the road."
Eastern Bay of Plenty Chamber of Commerce chief executive Gerard Casey also said it was great to see the Government taking action so quickly.
"They are clearly focusing on development at regional level, as they said they would. Creating new business and employment in the regions are what we need to be looking at within the Eastern Bay.
"The Kawerau project is an exciting one, as are the other projects announced, and shows a strong focus into going back to rail."
Kawerau Mayor Malcolm Campbell, who was at the launch of the Provincial Growth Fund in Gisborne, said it had been great to hear Prime Minister Jacinda Ardern speak so positively about the coalition.
"It was a very positive launch, not the least being the announcement regarding the feasibility study."
He said he and others (Kajavala included) had met with Jones to talk about three things involving Kawerau late last year.
"We've asked for support for the container terminal, the roundabout at State Highway 34 and the rail continuation," Campbell said.
"He took it all on board and, while he didn't say yes to everything, today's announcement highlights an intention to do the best he can."
Jones said the Government had signalled its strong commitment to using rail to drive regional growth and he expected more projects would be funded over time from the Provincial Growth Fund.
"These are relatively modest investments in dollar terms, but we expect them to deliver good value and to support regional businesses. The Government is making safety a higher priority when it invests in transport and taking logging trucks off challenging roads contributes to that."
