The NSW government pledged to upgrade the state's South Coast rail line, connecting Sydney to Nowra, to be delivered over a decade at an estimated cost of $6.8 billion.
Locals have for decades called for investment into the rail line, critical to the Shoalhaven and Illawarra economies.
Premier Chris Minns acknowledged wary locals had heard promises before and urged them to judge the government on what it is delivering.
The final leg of the track, between Kiama and Bomaderry, would be electrified, moving the diesel-serviced stage in line with the rest of the track.
The works would allow for more frequent services and less stopping along the line to Sydney
Transport Minister John Graham said upgrades would prove transformational as demand is expected to grow nearly 30 per cent for passenger and freight services by 2041.
"This is one of the biggest investments in South Coast rail since steam trains first came down the line in the 1880s," he said.
The century-old South Coast railway carries passengers, about 7.6 million annually, and freight between Sydney, the Illawarra and Shoalhaven.
An immediate $621 million injection would support critical infrastructure work, some of which is already underway.
Detailed planning works for the major upgrades would begin in 2027, though the project could take until the mid to late 2030s to deliver.
The line is particularly vulnerable to weather events, with steeper terrain, winding section and heavy rainfall totals, the government previously noted.
Illawarra Minister Ryan Park hit out at previous governments for neglect.
"The Liberals and Nationals failed to invest in this region for more than a decade ... Labor is delivering the essential services our communities rely on, without privatisation," he said.
NSW will head to the polls in March, with Kellie Sloane's Liberals and One Nation both hunting for Mr Minns' job.