The NSW Government has announced an A$6.8 billion investment to upgrade sections of the South Coast Rail Upgrade Plan. The project includes electrifying the rail line from Kiama to Bomaderry and duplicating tracks between Wollongong and Kiama. It will also improve Sydney’s rail network to enhance passenger infrastructure, reliability and freight movement. This is as Brisbane’s A$19.041 billion Cross River Rail project hastens development to achieve the same goal as South Coast.
This commitment, announced October 26, 2026 is conditional that the Minns Labor Government get re-elected in the 2027 NSW election. Detailed planning will be conducted from 2027 onwards. However, detailed plans have not been determined yet. Additionally, delivery is expected from the mid to late 2030s.
The South Coast Rail investment stretches from long term rail upgrades to the allocation of extra funds to upgrade reliability of infrastructure in the area.
The upgrades include signage, power, drainage, prevention of flooding where applicable, stabilisation of cliffs and upgrades to reduce bushfire risk and extreme heat effects. The funding allocated is A$621 million.
Key components of South Coast Rail Upgrade Plan Project
Improving capacity constraints on the South Coast Rail line that have been an issue on the line for decades
Passenger train traffic on the line equates to 7.6 million per year according to the government. Passenger demand is also expected to increase by 29%, whilst demand for freight will increase by 26% by the year 2041.
Electrify Rail from Kiama to Bomaderry (37km)
One of the key components in this project will be electrifying a section of the rail line from Kiama to Bomaderry, now known to run on diesel powered train.
This electricity supply infrastructure will allow for passenger trains to operate on the rail network. It will also help upgrade the ageing diesel trains.
Furthermore, the upgrades will allow passenger trains to run all the way from Bomaderry to Central Station in Sydney without needing to change trains at Kiama.
Similar to the difficulties raises with Projects Effecting Infrastructure, going forward, this project will have detailed design work carried out to determine what type of electricity supply (above rail), will be installed. This will include considerations around signals, powering the trains and upgrading the stations.
However, detailed design by the NSW Government has not yet been announced.
Additional Tracks and Passing Loops between Wollongong and Kiama
Another key component of this project is adding additional tracks and passing loops along this section of rail.
Within this section, a larger part is single tracked. This limits increasing numbers of trains. As this section will be single tracked, trains will need to have coordination with passing facilities, causing delays to other services if there are delays.
By adding tracks and passing loops, the trains able to pass each other, allowing improvements to frequency of bi-directional travel.
Furthermore, taking into consideration the location of this rail infrastructure can also create challenges. This is due to terrain steepness and limited room for drainage. Risk of extreme weather may also influenced the reliability of this area.
A detailed design work around existing infrastructure will be needed to determine what section of this line will have duplicated tracks and what levels will require passing loops.
Extending from Hurstville to Sutherland
The South Coast Rail Plan proposal will also duplicate the existing 2 tracks on the railway from Hurstville to Sutherland.
Currently, within this section of rail, South Coast rail services and T4 Illawarra line share the two tracks – resulting in capacity issues. This section being replicated into a 4 track facility will create separation between both services improving flexibility of operation. This will allow the overall capacity challenge to be improved.
The design work to be done will also look into other areas causing blocking within the rail network. These areas include level junctions, level crossings, and stations and tracks.
A$621M South Coast Rail Upgrade Resilience Program
This South Coast Rail Upgrade project also includes a A$621M investment.
Included in this rail project will be:
Power and Signalling – Upgrade Infrastructure improvements to power and signalling facilities to improve train movement.
Drainage and Flood Reduction -Improvements to the existing culverts, drainage facilities and some sections of track.
Stabilising Cliffs – Increase and support to cliff faces from Waterfall to Wollongong to avoid landslides or rockfalls.
Reduction of Bushfire and Heat risk – This helps overcome the current risk issues facing the rail network causing impact on services in extreme weather conditions upon. It will also help continue operations during improvements.
This does not mean that this amount will be spent on actual construction. The funds will be invested as part of an early infrastructure package.
Project Budget, Funding and Timeline
This project has announced they will invest A$6.8 billion into upgrading the South Coast Rail. This is conditional that the Minns Labour government get re-elected. Detailed design work is expected to begin in 2027.
Once planning processes are completed, the exact layout and costs will be determined. The construction will be expected to finish in the mid to late 2030s.
There is no specific mention of when work will start in this short term.
Additionally, there has been no mention of the chosen main contractor, time frames or what sections of this A$6.8 billion will be spent. There has also been no indication to what breakdown of the detailed design, what the main contractor will be, etc.
There is quite a long build time for this, as it’ll take into consideration the different aspects of upgrading an in-use railway.
The long delivery horizon reflects the complexity of upgrading an operating railway. Work will need to be coordinated with existing passenger and freight services, while engineers investigate alignment constraints, power supply, signalling, civil works and interfaces with stations and other infrastructure.
This is also a political commitment before the 2027 NSW election. Therefore layout and timeline will need to be determined following the planning process.
South Coast Rail Upgrade Project Economic and Regions Benefits
By improving the South Coast Rail line, they will be improving communications in the Illawarra and Shoalhaven regions.
This will inturn improve connection between local communities between Wollongong, Kiama and Bomaderry with Sydney and regional work centres.
By electrifying and increasing capacity on the tracks, this will also improve reductions in changing trains. It will also increase frequency of users getting from point A to point B quicker due to more reliability.
Having better rail infrastructure can also help bring more tourists as it will become easier for services to get to coastal destinations.
The government projections state Freight demand will increase by 26% by 2041. Adding extra capacity on this rail line will also aid this to resolve through creating separation of freight and passenger services between Hurstville and Sutherland.
During construction, there will be improved employment opportunities in civil engineering, railway, electrical, signalling, construction and operations.
Specific mention of how many jobs will be created has, however, not been mentioned.
Overall, this will depend on the infrastructure being delivered as proposed and time filings being well managed to ensure reliability.
Challenges and What Will Happen Next
Existing geography of the South Coast Rail Upgrade
As the railway can be susceptible to flood, landslides, bushfire and extreme heat needs to be considered into design. Adding extra tracks can often cause earthworks, drainage changes and new structures difficulties.
As this is working information along an active train line, this will need to have consideration that there will be trains running and passengers using it. This means the planning will need to consider the order of works, temporary services disruptions and possessions required.
Once detailed design work begins in 2027, a better idea of what will happen will come to light. This will help determine a final layout, spending, design and procurement-required.
South Coast Rail Upgrade Project Fact Sheet
Project name: South Coast Rail Upgrade Project
Location: Illawarra and Shoalhaven regions of New state of New South Wales
Project type: Heavy Rail Electrification, Track Duplication and Capacity Expansion and Rail Resilience Upgrades
Investment announced: A$6.8 Billion (Conditional on NSW Labour Government getting re-elected)
Early infrastructure investment: A$621M
Electrification: Kiama – Bomaderry
Capacity upgrade – Additional tracks and Passing Loops from Wollongong to Kiama. 4 track section added from Hurstville – Sutherland
Started detailed design: Expected to start in 2027
Expected Delivery: Mid to late 2030s
Stakeholders Involved
NSW Government: Announced South Coast Rail Plan payments.
Transport for NSW: State transport body dealing with transport in NSW.
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