The NSW Government has awarded $3.3 million in funding for upgrades to the Port of Waratah Yard.
The project is part of the $400 million Fixing Country Rail program which aims to improve efficient freight movement.
Parliamentary Secretary for the Hunter Scot MacDonald said, "The project includes building two 1,300 metre rail tracks which would allow longer grain trains of up to 48 wagons in length, to operate more efficiently."
Mr MacDonald said the upgrades will cut delivery times to allow more goods to be transported by the rail services - in turn lowering costs for producers and consumers.
The Australian Rail Track Corporation project will enable approximately two million tonnes of grain to be transited from North West NSW to the Port of Newcastle each year.
Minister for Roads, Maritime and Freight, Melinda Pavey said the estimated 210 million tonnes produced by regional NSW each year is expected to increase by 40% in the next 40 years.
"Transport from paddock to port can be 18% of the cost of grain sold by regional farmers," Mrs Pavey said.
"Fixing Country Rail supports jobs, growth and economic productivity in regional NSW by reducing the cost of getting goods to the market."
The improved efficiency of the rail hopes to benefit consumers by lowering local supermarket costs and help exporters become more competitive.
