If re-elected, a state Liberal government will spend $125 million to build a four-kilometre crossing loop for the rail line at Toolijooa, says Kiama MP Gareth Ward.
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Mr Ward and South Coast MP Shelley Hancock made the announcement yesterday, and said it would "nearly double" connecting services between Kiama and Bomaderry.
Despite concerns about the future of the Kiama-Bomaderry rail line, Mr Ward said the Liberal Party was "committed" to its future.
"Shelley and I advocated for a bus service to supplement the train line," he said.
"There were groups saying this was a way of whittling down the line - that is not the case.
"We are committed to investing in this line. You don't need to duplicate the whole line, this will deliver the same outcome. You can electrify that section once there is a crossing loop."
He said rumours about the line's relationship to Manildra Group were unfounded.
"I hear the rumour all the time that the only reason this line is staying open is Manildra," he said.
"That's not the reason. This government is committed to public transport. This project will be entirely government funded. This upgrade will create the capacity to deliver a regular 30 minute service in peak hours and a regular 60 minute service in the off-peaks."
Mr Ward said the government was yet to determine which properties would be affected: "We will have to acquire property in consultation with the public," he said.
Mrs Hancock said upgrades to the rail line would improve connectivity for regional centres.