The investment follows the decision to consolidate port operations at Bays West and refocus long-term freight and industrial capacity away from Glebe Island, positioning the Illawarra at the centre of the State's future trade and freight network.
As part of the transformation of the Bays West precinct, bulk port operations - including cement, gypsum and sugar handling - will cease on Glebe Island by no later than 2030.
Consultation with industries will guide the next steps of both ports transitions. Salt will continue to be imported to Bays West.
The Port Kembla investment package will deliver targeted upgrades to the road network around the port of Port Kembla, and will investigate a new rail freight pathway, so freight can move more efficiently while supporting new industry and employment opportunities.
The investment, which has been informed by the Delivering freight policy reform in New South Wales and will build on existing road and transport investments in the Illawarra, including:
- Planning the major upgrade of Picton Road between the Hume Motorway and Princes Highway.
- Identifying improvements to the South Coast Rail Line through the Illawarra Rail Resilience Plan.
- Building the new Mt Ousley Interchange.
This investment builds on the Government's recent commitment to major local infrastructure, including the upgrade of Wollongong Entertainment Precinct, delivering long-term economic benefits for the region.
As well as one of the world's largest land transformation projects, the finalisation of the rezoning of BlueScope's Port Kembla's 200 hectares of surplus land which will support up to 20,000 jobs on top of the more than 10,000 jobs supported by the steelworks.
Minister for Transport John Graham said:
"Port Kembla will play an increasingly important role in the state's freight future, and improving rail and transport links is essential to unlocking that potential.
"By strengthening connections between road, rail and port operations, we're making it easier to move goods across New South Wales while supporting new investment and long-term employment opportunities in the Illawarra."
Minister for the Illawarra and the South Coast Ryan Park said:
"This Government is serious about investing in the future of the Illawarra, and securing the region's place as a key economic gateway for the State.
"This package will deliver the key roads and transport infrastructure we need to unlock limitless opportunity for growth in the region.
"This investment is good for jobs, good for the economy, and good for the region."
Minister for Planning and Public Spaces and Member for Wollongong Paul Scully said:
"Port Kembla will play an even bigger role in NSW's economic future, and this investment makes sure the Illawarra is ready to seize that opportunity.
"By strengthening road and rail connections, we're backing local jobs, supporting industry, and making sure growth happens where it makes sense.
"Ending operations at Bays West allows us to invest in the infrastructure that will secure Port Kembla as a world-class working port for decades to come."
Minister for Roads Jenny Aitchison said:
"Port Kembla is becoming an even more important industrial hub, but we know this growth cannot come at the expense of local roads.
"We are investing now to future-proof the roads and access points around the port - supporting the jobs of today and unlocking the next wave of growth for the Illawarra.
"This $270 million package is about building the roads and transport capacity Port Kembla needs to stay competitive, attract investment and support the Illawarra as it continues to power the New South Wales economy".
