Senator Chisholm made the comment to
The Observer following an Inland Rail round table meeting last week in Gladstone.
The meeting was also attended by Member for Gladstone Glenn Butcher, Gladstone Mayor Matt Burnett, CQUniversity Chancellor John Abbott and local economic groups.
Mr O'Dowd accused Senator Chisholm of playing politics over the issue.
"Senator Chisholm needs to stop playing politics with the people of Gladstone," he said.
"This is a very broad presumption and comment to make and simply not correct."
Mr O'Dowd said he had been a strong advocate for the Inland Rail project to be linked to the port city.