An application to rename the station Shell Cove and Flinders was knocked back by the Geographical Names Board (GNB). A revised application for the name Shellharbour Junction will go to the board on July 8.

Construction of the $39 million project is under way and expected to be finished at the end of this year.

The new station is located about one kilometre north of the existing Dunmore station, on the outskirts of Shell Cove and within the geographical location of Dunmore.

Warilla resident Richard Cannan is concerned about who will foot the bill if the name changes from Dunmore.

"There is a lot involved in a name change," Mr Cannan said. "Ticket machines across the state will have to be reprogrammed and labelled, timetables will have to change, as well as driver rosters, and electronic and manual indicator panels.

"It's a total waste of money and those who use the station are not gaining anything but a name change. It is in the boundary of Dunmore, so why go to all the expense when we don't need it."

A spokesperson for the GNB said costing was not part of the decision-making process for the board and naming a place was considered on its individual merits, in line with various guidelines.

"Generally the naming of a station is adopted based on the location it is in, but this is not always the case," the spokesperson said.

A NSW Transport spokesperson said the construction cost for any new train station factors in the cost of new signage and other station equipment.

"Transport for NSW is awaiting advice from the GNB regarding the naming of the station," the spokesperson said.

"Dunmore Station will no longer operate following the opening of the new station and may require some timetabling changes, which would be communicated to customers well in advance of the station opening."

The station will share in the $193 million funding for the Transport and Access Program in the NSW Budget.