Keira MP Ryan Park said on Thursday the funding would be used to expand the Illawarra Health and Medical Research Institute (IHMRI) based at the University of Wollongong.

Specifically it would contribute to a purpose-built clinical and population research facility that would include consultation and seminar rooms, supervised exercise areas for research into obesity and a mental health suite.

"The university has made it clear that it is looking to expand what it does in terms of both the quality and quantity of research it does," Mr Park said.

"We know that the cutting-edge health and medical research already carried out at IHMRI is critical to not only delivering local solutions to regional issues, but further enhancing the health of all Australians.

"This includes research in the areas of obesity and other lifestyle-related illnesses and conditions, research into mental health, and population health issues and trends."

Mr Park said the fund would be reserved in Labor's Illawarra Infrastructure Investment Fund, which would be set up to ensure $380 million from the long-term lease of Port Kembla port was returned to the region.

"This investment is vital as it will make the Illawarra a real hub for medical research by attracting the best and brightest researchers to live and work here," he said.

"Expanded facilities, more researchers and more research will pave the way for advancements in the ways people are treated, as well as preventative measures to keep people healthy and keep them out of hospitals," Mr Park said.

He said the world-class research being conducted in the region would hopefully lead to improved health statistics.

He said the Illawarra Shoalhaven region had a higher mortality and standardised death rate than the state average (6.0 per 1000 versus 5.7 per 1000). It also had a higher disability rate (6 per cent of the population versus a NSW figure of 4.9 per cent) and a higher than state average prevalence of type 2 diabetes, obesity, hypertension, asthma and depression.

"The information the university and researchers has provided me shows we do have particular issues that need to be addressed," Mr Park said.

He said the region also had an an ageing population and one that was socio-economically disadvantaged.