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 on Tuesday, and said it would "nearly double" connecting railway 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 have advocated for a bus service which supplements the train line," he said.
"There were groups saying this was a way of whittling down the line - that is not the case at all. We are committed to investing in this line.
"You don't need to duplicate the whole line - this will deliver the exact same outcome. You can electrify that section of the line once there is a crossing loop."
He said other rumours about the line's relationship to Manildra Group were also unfounded.
"I hear the rumour all the time that the only reason this line is staying open is because of Manildra," he said.
"That's not the reason. The reason is because this government is committed to public transport. This project will be entirely government funded.
"This upgrade will also 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 slammed Labor for saying they would "look into" options for the line.
"Labor's policy was that they would 'look into' this section of the line. We want action."
Mr Ward said the government was yet to determine which properties would be affected by the project.
"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.
"The NSW Liberals & Nationals Government is committed to starting the construction of a fast rail network next term, linking regional centres like Wollongong and Nowra to each other and Sydney," she said.
"(This is) on top of the Government's recent commitment to double the number of carriages on nearly all weekend services on the South Coast Line, adding nearly 20,000 extra seats per week.
"Labor has no plan for the south coast rail line. We've committed and we will deliver."