The federal government will allocate $1 billion to create a faster rail link between Newcastle and Sydney in Tuesday's budget.
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The funding, which will be used to upgrade a 10 kilometre stretch of track between Wyong and Tuggerah, will be matched by the state government.
The upgrade, which falls in the key marginal seat of Dobell, is the headline item in a $3.3 billion NSW infrastructure spend.
The rail project will be complemented by a $336 million upgrade of the Pacific Highway at Wyong.
A further $8million will be spent on planning work to duplicate the New England Highway between Muswellbrook and Singleton and $7.2mill for planning work to upgrade the Italia Road and Pacific Highway intersection at Balickera, Port Stephens.
"Continuing to provide record future funding for road and rail projects is a key part of our economic plan for the long term to keep our economy strong," Prime Minister Scott Morrison said.
"By investing in these projects we are delivering the infrastructure that the Australian economy needs to grow, to get Australians home sooner and safer, and generate thousands of jobs and new opportunities for small businesses."
The government estimates the upgrade of the Newcastle to Sydney rail line will support 4,560 direct and indirect jobs
The project will involve the construction of two new tracks between Tuggerah and Wyong, effectively doubling the capacity of the existing 10km rail alignment.
Extra platforms will be built at Wyong and Tuggerah stations and new dual track rail bridges will be built over the Wyong River.
Ultimately the project will improve travel time and travel time reliability for existing passenger and freight services by enabling express passenger services to overtake all stop passenger services and freight trains.
"Our Government has a strong track record in delivering infrastructure that improves connections, reduces congestion and helps keep Australians moving, particularly across our fast growing urban centres," Minister for Urban Infrastructure Paul Fletcher said.
"The $1 billion commitment to boosting rail capacity between Tuggerah and Wyong, through the quadruplication of track on this corridor, will contribute towards faster, more frequent and more reliable services between Sydney and Newcastle - currently the busiest regional passenger rail corridor in Australia.
In contrast to the government's plan, the Opposition has pledged to spend $500 million for planning and acquisition of a fast rail route between Newcastle and Sydney.
Nationals Candidate for the Seat of Hunter James Thomson said the $8million investment in planning for the duplication of the New England Highway between Muswellbrook and Singleton was vital for the region's future.
"We need projects that set our region up for the next 10, 20 and 30 years and these are examples of how we are driving ahead with our big vision for the future of this region," he said.
"Better roads mean workers get home to their kids sooner, businesses have access to the Port of Newcastle and people can get to our world leading wine and tourism areas quicker."
Mr Thomson said he was also very pleased to see an additional $30 million allocated in this year's budget for the Tenterfield to Newcastle corridor.
The budget contains $7.2milllion for planning work on a grade-separated interchange at the busy Italia Road/ Pacific Highway junction, which links Dungog shire and the Lower Hunter with the M1.
The state government will contribute a further $1.8-million towards the project.
Federal Member for Lyne David Gillespie said he would continue to agitate for more grade-separated interchanges, as the necessary next phase following the completion of the 650-km Pacific Highway duplication.
"There are many intersections that need to be grade separated. These should go up the priority list and I'll keep fighting, as I have for Italia Road, for Federal funds to contribute," Dr Gillespie said.
"These projects will make our roads safer, particularly for local traffic entering and exiting the Pacific Highway and reduce travel times."
The $336 million Wyong Pacific highway upgrade will improve traffic flow, travel times and safety through the town.
The project, which is being delivered in partnership with the NSW Government (80:20 split) will deliver two lanes in each direction between Johnson Road at Tuggerah and Cutler Drive at Wyong, and replace the Wyong River road bridge with two new road bridges.
It will also integrate the rail interchange with bus services, taxi services and disabled and short-term parking, provide new signalised intersections at Rose Street, Anzac Avenue, North Road and Cutler Drive, upgrade the existing intersection at Church Street, and replace the Rose Street rail bridge.
Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Barnaby Joyce said the upgrade will better connect communities, bust congestion and keep motorists moving.
"This is a critical investment that will ensure the Central Coast's infrastructure keeps pace with the region's growing population and traffic volume," he said.
"Our Government is continuing to deliver infrastructure upgrades that create jobs, keep commuters and freight moving safely and efficiently, and strengthen our economy - the length and breadth of our nation."
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