A strong NSW political push to curb Canberra's development is playing into the hands of property developer George Tzovaras, who paid $2.65million last month for Goulburn's airport.

He plans to spend $25million extending its 1.6km runway to accommodate bigger aircraft and is pursuing freight and pilot training businesses operating out of the heavily congested Sydney and Bankstown airports.

Mr Tzovaras recently bought for $6.95million Goulburn's historic Kenmore Hospital precinct, where he plans to establish pilot training. He is forming an alliance with proponents of the $1billion Southern Distribution Freight Hub on a 263ha site between the Hume Highway and Goulburn airport.

The warehouse, business park and freight hub project has concept approval from the NSW Government and a 50-year lease agreement to use the Sydney-Melbourne railway line.

A staging plan is about to be submitted to NSW Planning. It will complement Mr Tzovaras's plans to strengthen and lengthen the airport's runway and build a freight terminal.

Federal Member for Eden Monaro Mike Kelly and NSW Member for Monaro Steve Whan are keen to see an air freight hub developed in Goulburn, well away from Queanbeyan, to avoid aircraft noise in their marginal electorates.

Mr Whan said, ''I'm a strong supporter; it's on the Hume Highway and far better than Canberra.''

While supported by the business community, Canberra Airport's plan for 24-hour freight operations has angered North Canberra residents fearful of noisy night-time flights and featured in a bitter debate over developing residential land at Tralee, south of the airport.

Southern Distribution Hub project director Bob Stephens said NSW Government agencies were backing the Goulburn project to free land in Sydney's west and airspace over Sydney Airport.

Four years of planning and $22million had been invested in the project, which would provide more than 3000 jobs and make use of Goulburn's excess capacity in the railway, schools and hospitals.