The New South Wales government has committed almost $10 million to build the largest government-run autonomous vehicle testing site in the southern hemisphere. 

The small facility outside Cudal, in central west NSW, was once an airport and the home of what became REX Airlines.

It now plays host to the next development in travel technology, driverless vehicles.

The Future Mobility Testing and Research Centre was officially opened in 2019 but has already reached maximum capacity from private companies wanting to test emerging vehicle technology.

The new upgrades will include the construction of an intersection and another kilometre of tarmacked road, as well as office infrastructure to accommodate more companies hoping to test their cutting-edge technology.

NSW Minister for Regional Transport and Roads Sam Farraway said the investment would ensure regional NSW plays a major role in the future of driverless vehicles in Australia.

"The technology is moving forward whether we embrace it or not, but the great news is Cudal is becoming the leader in this technology," he said. 

Included in the funding is $1 million towards developing a master plan to turn the old airport into an "autonomous vehicle connected city.'

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Andrew Mehaffey from HMI technologies has been using the facility to test his company's driverless, electric shuttle buses.

"It can drive itself without any steering wheel or pedals in known areas, so we program it to take people places," Mr Mehaffey said.

Mr Mehaffey said the site at Cudal was "fantastic" for HMI to test and develop its vehicles.

"We've been doing all sorts of things with the vehicle that would be really difficult in other areas.

Closer than you think

While the experts say widespread adoption of autonomous vehicles was still a long way off, one company at the Cudal site was set for trials on public roads as soon as next month.

Conigital Australia have been using the facility to develop their autonomous vehicle and are set to begin testing on public roads around Dubbo in June.

The acting director of Future Mobility at Transport for NSW, Megan Sharkey, said some of the tech at the site, such as autonomous buses and street sweepers, could be on the roads within five years.

Ms Sharkey said the new investment would allow higher-speed testing, simulated intersections and pedestrian activity, and a range of other scenarios that cars would encounter on public roads.