Ambitious plans to improve mainline and commuter railway services over the next seven years are included.
The southern and eastern region - more dependent on public transport than the Border, midland and western (BMW) region, according to the plan - will get £453 million to address regional public transport requirements, including trains and buses.
The BMW region will get £197 million.
The strategy for regional mainline rail services will focus primarily on improving safety and meeting growing passenger demand, as well as improving the quality, speed and reliability of these services.
Out of a planned £500 million to be spent on these services, £350 million will be used on completing the Railway Safety Programme, 1999-2003, while the remainder (£150 million) will be allocated towards the provision of new rolling stock, upgrading stations and renewing railway plant and machinery.
The plan also envisages improvements to the commuter rail services between Cork and Cobh, and Cork and Mallow.
As part of a regional suburban rail development programme, a feasibility and cost evaluation study - to be completed at the end of the year - is looking at the possibility of a commuter rail service between Cork and Midleton and Limerick and Ennis.
While existing investments from both the Exchequer and EU cohesion and structural funds have led to improvements in infrastructure and services on the Belfast and Cork/Limerick lines, the Galway, Waterford, Tralee and Sligo routes will have been "substantially upgraded" by the end of 2000, says the plan.
"However, significant infra structural deficiencies still remain to be addressed," it adds.
Improvements to the rail network in the outer suburban Dublin area include investments in the DART and other rail networks to reduce road congestion, emission-related problems and to meet the anticipated growth in demand.
Apart from existing plans, to be completed by the end of 2000, which include DART extensions to Greystones, Malahide and the upgrading of the Maynooth line, a further £1.5 billion is being provided in the plan for public transport and traffic management.
Of this, £185 million is being made available, in the short term, to provide for a phased purchase of 46 additional DART cars and 58 diesel rail cars; upgrading of the Greystones to Arklow line; linking Heuston and Connolly stations to permit the Kildare Arrow service to run through to Connolly; quadrupling of track between Hazelhatch and Sallins to separate long-distance and suburban services; provision of new stations at Intel, Lucan north and south, Ashington station improvements and new depot facilities; and resignalling of Howth to Barrow Street and crossover works to provide slots for three additional peak-hour services.