The NSW Government says delivery of its long-awaited Regional Rail Fleet is back on track, with new trains now arriving and undergoing testing across the state – including on routes that service the New England and North Coast regions.
The milestone follows a critical assessment of the project by the NSW Auditor-General last October, which highlighted major delays, cost overruns, and procurement issues.
The State Government says it has now taken delivery of nine trains, with two currently operating on parts of the network as testing ramps up.
Train enthusiasts and commuters alike have begun spotting the distinctive orange carriages on regional lines – a sight communities across northern NSW were promised several years ago.
The trains were originally scheduled to enter service in 2023. However, the previous government delivered the project through a complex public-private partnership (PPP), a model the current government says slowed progress and contributed to delays.
Since taking office, the State Government has dismantled the PPP arrangement and returned project management to Transport for NSW. The state is now contracting directly with manufacturers CAF and UGL.
According to the government, the shift has increased production and reduced costs.
All long regional trains have now been manufactured, while around half of the shorter sets are complete. Production is underway on the remaining carriages, with one train expected to arrive at Port Kembla every six to eight weeks.
Testing is also progressing, with about 1,500 hours of dynamic testing completed so far. Two trains are currently undergoing intensive trials across both electrified and non-electrified sections of the network to test their bi-mode capability, which allows them to operate using overhead electric power or diesel.
The technology will be used across long-distance routes linking regional NSW with the ACT, Victoria, and Queensland, including services used by passengers travelling to and from the New England and North Coast.
Once operational, the full fleet of 29 trains will replace ageing long-distance services and is intended to improve comfort, accessibility, and reliability for regional passengers. The government also says the new trains will support tourism growth in regional areas.
While testing continues, the government is progressing a $40.3 million program to extend the life of the existing XPT fleet to maintain services.
A final timeline for passenger services will be confirmed once testing is complete and safety accreditation is granted by the Office of the National Rail Safety Regulator.
Regional Transport Minister Jenny Aitchison said the Auditor-General had highlighted the financial impact of the previous procurement approach.
“The Auditor-General exposed the cost of their approach: a combined $2.5 billion blow out in the cost of purchasing intercity and regional trains and years of delays.”
Aitchison said the government had “dismantled the failed PPP, consulting with workforce and experts and restoring accountability.”
“People can now see the distinctive orange fleet on the tracks across NSW.
“That visible progress is the result of steady, practical work to get this project back on track.”
She said extending the life of the XPT fleet had also been necessary due to delays.
“The delay we inherited meant we also had to invest $40.3 million to extend the life of the ageing XPT fleet to keep services safe and reliable.”
Aitchison said regional passengers remained the focus of the project.
“We will always make sure regional passengers have safe, reliable, and high-quality transport.”
“We are rebuilding confidence in regional rail and delivering the fleet regional NSW deserves.”
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