The largest single investment in heavy rail infrastructure in generations has commenced, with the first stage of resilience work already underway on the South Coast Line.
Last month the Minns Labor Government announced that if re-elected, the $6.8 billion South Coast Rail Plan will deliver the capacity, reliability and resilience required by the growing passenger numbers and freight requirements of the Illawarra.
This includes an immediate investment of $621 million, allocated in the 2026-27 NSW Budget, that has already begun delivering critical upgrades targeting common and high-impact causes of disruption, including flooding, bushfire exposure, corridor intrusions and asset failures.
This follows repeated broken promises from successive Liberal governments over more than a decade to provide improved rail services for the Illawarra and South Coast.
By contrast, the Minns Labor Government has begun works to significantly improve those very services. This includes bridge repairs at Stanwell Park, culvert improvements at Scarborough and track and turnout renewals near Kiama.
Ongoing resilience works will include:
- Renewal and upgrades of critical power infrastructure at priority locations.
- Improvements to signalling infrastructure.
- Strategic flood protection and bushfire resilience improvements at high-risk locations.
- Reducing corridor intrusions and collisions through improvements to level crossing safety, fencing and monitoring systems.
Together, these measures are intended to support fewer delays and cancellations, more predictable journey times, faster recovery following disruption and greater confidence in day-to-day rail travel.
They will also support more reliable freight access to Port Kembla and stronger supply-chain performance.
The Minns Government's careful budget management means we can afford this investment without putting pressure on inflation or increasing debt. We have reduced forecast debt by $10 billion this term and a further $10 billion next term, and are the lowest spending government in Australia, State or Federal, Labor or Liberal.
South Coast Rail Plan
The South Coast Line is a vital passenger and freight corridor linking the Illawarra, Shoalhaven and Greater Sydney, including nationally significant freight movements through Port Kembla.
The corridor is constrained by ageing infrastructure, steep terrain, single-track sections and growing exposure to extreme weather.
While immediate resilience work is underway, the planning for longer term rail infrastructure will commence in 2027. Works will include:
- Electrification of the Kiama to Bomaderry line.
- Installation of additional tracks and passing loops between Wollongong to Kiama.
- Removing South Coast bottlenecks including flat junctions, level crossings, and station and track locations.
- Installing quadruple tracks between Hurstville to Sutherland.
A final business case will confirm the final scope and cost of the upgrades, with construction expected to be complete by the mid to late 2030s.
The $6.8 billion investment on the South Coast, is in addition to a $12 billion investment to build the next fleet of passenger trains in the Hunter, and a $2.1 billion investment in rail maintenance and reliability on the Sydney Trains network.
Investment in the South Coast
The Minns Labor Government has a strong record of delivering essential infrastructure on the South Coast, without privatising public assets.
After more than a decade of neglect under the former Government, this government is upgrading schools, hospitals and delivering critical road and transport projects the region needs.
We're investing billions in major health infrastructure including upgrades to Shoalhaven Hospital, a new hospital for Shellharbour, a new Community Health Centre in Warrawong and upgrades at Wollongong Hospital.
The NSW Government is also delivering on our commitment to deliver Calderwood Public School and extend the Tripoli Way, a project neglected by the former government, which will ease congestion through Albion Park and Calderwood.
Major upgrades to Ulladulla High School and Milton Primary School are also ahead of schedule, and nine new fee-free public preschools are under construction.
Minister for Transport, John Graham said:
"For too long under the Liberal government all the money was pouring into metros in Sydney, while investment in the heavy rail system on the South Coast stagnated.
"To accept the status quo would limit the potential of the South Coast. We have to deliver a rail service that matches the economic potential of this incredible region.
"Our message to the people of the Illawarra is that we're not waiting until the election to get started on the vital work that will improve resilience and reliability on your rail line.
"The work has already begun and will ramp up from crucial resilience to major infrastructure planning next year."
Minister for Illawarra and the South Coast Ryan and Member for Keira Park said:
"While the Liberals continue their obsession with metros in Sydney, the Minns Labor Government is focused on delivering the long-term infrastructure our South Coast rail service needs as our community and our economy grows.
"Unlike the former government, we aren't delivering false promises. Our investment has already started to roll out.
"This is a generational investment in our region, and with work already underway, communities in the Illawarra and South Coast can be confident we will deliver."
Treasurer Daniel Mookhey said:
"Previous Liberal governments repeatedly made - and then broke - promises to the people of the Illawarra and the South Coast to improve the region's rail services.
"The Minns Labor Government has reversed that approach. Investment included in this year's Budget is already flowing, with the resilience work underway.
"Our careful financial management means we can make this investment without putting pressure on inflation or increasing debt."
