UGL will replace John Holland Rail in maintaining the country NSW rail network from 2022 and it plans to base its Network Control Centre in Orange.

The deal with the state government is set to bring an as-yet-unspecified number of jobs to Orange.

Orange mayor Reg Kidd said the council had shown UGL executives several possible sites, including offices and factories, around Orange over the past 12 months.

Cr Kidd said following the confirmation UGL had won the deal council would be in talks with the company this week.

"It is brilliant. It will generate employment opportunities for people young and old," he said.

"It is recognition that we are a central economic development hub."

Cr Kidd said the work should include apprenticeships and traineeships.

"There will be lots and lots of jobs."

He said UGL had a focus on work for Indigenous people and people with disabilities.

Regional Transport and Roads minister Paul Toole said it was a huge win for regional NSW.

"We went to the market asking for a strong focus on regional employment including a minimum of 80 per cent of jobs needing to be based in the bush and a requirement for a Network Control Centre in a regional area which UGL has advised it plans to set up in Orange," he said.

"Running the Country Regional Network is an important and mammoth task. Since 2011, the NSW government has invested more than $1 billion to ensure it delivers for all our customers, from our rail passengers to farmers and industry.

"In fact, almost 1000 kilometres of the network is dedicated to moving grain, highlighting the importance of the [CRN] in moving the state's crops from the silo to local markets and ports for export.

"The new partnership with UGL will see an increase in the amount of maintenance work carried out over the next 10 years to ensure that the network continues to meet the high standards that operators and customers expect."

A statement from UGL listed the Network Control Centre as a key part of the deal.

It said it would also introduce a new rail signalling system and would be in charge of asset and property management across the rail network.

UGL managing director Doug Moss said the company would begin work this year ahead of the contract starting next January.

"This contract win solidifies UGL as the leading rail services company in Australia, by building on our extensive work across the NSW rail network and complementing the rail projects we manage in all other states and territories," he said.

"We look forward to working with Transport for NSW on the safe and successful transition of the country Regional Network contract over the coming months."

UGL is part of the CIMIC Group of companies.

Its executive chairman and CEO Juan Santamaria said there would be a "strong commitment to Indigenous and regional employment" under the contract.

"The [CRN] provides a reliable and sustainable rail network to safely transport passengers and goods across regional NSW," he said.

"CIMIC and UGL are proud to support Transport for NSW to keep this essential service running across more than 2300 kilometres of rail."

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