Minister says it would be 'inappropriate' to comment on Cessnock rail idea

The Maitland MP's comments come as a survey of almost 1000 residents reveals that despite strong local support, more than 50 per cent of people don't believe the government would act on the project, even if there was a strong case supporting it.

Advocates are calling for $10 million in the upcoming state budget for a feasibility study into the proposal, which would see the government acquire the rail - currently owned by Aurizon and Yancoal - and turn it into public transport corridor.

A budget submission claims repurposing the line would be tenfold cheaper than a traditional rail project, but Regional Transport Minister and Maitland MP Jenny Aitchison refused to be drawn on the idea.

"The NSW budget will be handed down later this year so it would be inappropriate for me to rule in or rule out any spending proposals," Ms Aitchison said.

The Maitland MP suggested spending would be limited in the upcoming budget, claiming the Minns government "was handed the largest debt in our state's history".

Returning rail to Cessnock has been a long-standing government policy and has been mentioned in five NSW government transport strategies since 2016.

The Newcastle Herald asked Ms Aitchison what alternative proposals the government was considering to return rail to Cessnock and what public transport plans it had for the Cessnock and Maitland LGAs, which are the state's two fast growing LGAs outside of Sydney.

However, she did not respond to the specific questions.

"I will continue to work with communities on their transport needs," Ms Aitchson said.

"As a government we are committed to making responsible long-term investments to support the communities of NSW."

The plan is estimated to cost between $100 million to $200 million, which includes the cost of establishing eight stations along the route.

In the neighbouring Cessnock electorate, fellow Labor MP Clayton Barr has backed the calls to fund a business case and "actually take a serious look at it".

Despite his support, locals are sceptical of government action. In a survey conducted by Train to Cessnock found almost 95 per cent of people thought the state government should take action this term to upgrade the line and start a regular passenger service.

However, more than half didn't think the government would do anything, even with a strong case supporting it, with about 50 per cent of those believing the seat to be too safe for a Labor government to spend money on it.

Bill Palazzi, a Hunter Valley-based rail expert with 35 years experience in the industry, prepared the budget submission and said the proposal was "incredibly cheap".

"I don't buy the government's argument about cost," Mr Palazzi said.

He pointed to a 19km rail project the Queensland government recently announced - estimated to cost between $5.5 billion and $7 billion - to connect Beerwah and Caloundra the Sunshine Coast, servicing a population of 100,000.

"That's going to cost between $55,000 and $70,000 per person," Mr Palazzi said.

"The Cessnock proposal is orders of magnitude below that in terms of cost. It's about $2000 and $4000 per person. It would cost them peanuts.

"A business case would absolutely show it stacks up way better than any other project. The $10 million to do the study is literally spare change, it's a rounding error in the Transport for NSW budget."

Although the proposal is cheap now, advocates have warned the cost will blow out if the government doesn't act, as unused lines can quickly deteriorate and Yancoal will be required to rip up its section of the line soon as a condition of its mine rehabilitation.

"No government is rewarded for coming to power and sitting on their hands," Mr Palazzi said.