- The Lithgow community is campaigning for the reopening of the Lithgow Locomotive Workshop, with ALP members voting unanimously for government action to purchase the site from Pacific National.
- The Workshop, which has been vacant for years, occupies a significant portion of Lithgow's industrial land and is strategically located at the junction of electrified and non-electrified rail networks.
- Pacific National rejected a bid from Southern Shorthaul Rail (SSR) and is poised to sell to a property developer, despite SSR's current need for workshop space for their 30 maintenance staff.
- The site could potentially support both existing freight rail businesses and new battery-electric train manufacturing, helping create jobs as Lithgow transitions away from fossil fuel industries.
- A unanimous motion was passed at the NSW Labor Country Conference calling for immediate state and federal government action to purchase the site and engage with local businesses about leasing opportunities.
Tuesday 17 FEBRUARY 2026
media release
The community campaign to create jobs by reopening the Lithgow Locomotive Workshop reached a new level on the weekend. After months of frustration, common sense has prevailed with ALP rank and file members voting unanimously for State and Federal Ministers to take immediate action to buy back ‘the Loco’ from Pacific National.
‘Returning ‘the Loco’ to public ownership has always been a no-brainer,’ said Mr David Peters, Chairman of the Lithgow Community Power Project. ‘Everyone agrees it needs to happen. It’s been left vacant for years and occupies a huge portion of our industrial land area. If it’s returned to public ownership, it can be leased out to private sector businesses with commercially viable uses for the site, so that it’s productive, creates jobs and income for the Lithgow community and the state of NSW.’
Sitting right on the point where the electrified rail network from Greater Sydney ends and the vast distances of non-electrified track through the NSW Central West begins, the history of the site has been controversial with many people left feeling angry.
For years, the Loco has been neglected with sections of track dismantled after Pacific National lost rail freight contracts in the region to competitors. In 2024, community groups began a public campaign to have the site brought back into public ownership. Lithgow City Council came on board with unanimous support, and put pressure on Pacific National to relinquish the site. The site was put on the market in August last year.
‘When this happened, we jumped into action and asked State and Federal Governments to buy the site,’ said Mr Peters. ‘But all they did was dither and send us long letters containing platitudes.’
Meanwhile, Pacific National received two expressions of interest, one from local rail freight haulier (Southern Shorthaul Rail) and the second from a property developer. Pacific National rejected the bid from SSR while the community campaigned to have government step in, buy it and preserve it for rail manufacturing given there is currently a chronic shortage of railway workshop space in NSW.
‘We dreaded the site being ‘land banked’ where developers do nothing for another five years while they wrestle with government to let them build home units,’ said Mr Peters. ‘We’ve had 1,400 lots in Lithgow ready to help solve the housing crisis for over three years. Everyone’s waiting for TfNSW to stop dithering on that issue too.’
At the same time, SSR — who employs around 30 maintenance staff — currently have people working outside in the open on railway sidings because they can’t access railway workshop space in the area.
‘Workers — our neighbours — are exposed to hot temperatures in summer and sub-zero temperatures in winter while the Lithgow Locomotive Workshop site sits idle,’ said Mr Peters. ‘It’s outrageous.’
Lithgow is also where the award-winning solar train was designed and manufactured. Operating successfully in Byron Bay for the last seven years, it is Australia’s only working battery-electric passenger train. The Lithgow Community Power Project contacted local rail manufacturers specialising in battery-electric passenger and freight train conversions, asking if they would be willing to take up part of the site. For a while, Pacific National agreed to look at leasing the 11.6ha site, before reverting back to selling just before Christmas when everyone was distracted.
‘Lithgow’s unique human capital could help the Federal Government reach their ambitious targets for battery-electric train trials,’ said Dr Michelle Zeibots, a transport planner from the University of Technology Sydney who has been assisting community groups.
‘Successful battery-electric freight and passenger trains have been slow to appear in Australia. The community has sought to encourage relationships between international and local rail manufacturing businesses that could occupy the Loco. But these are in their infancy and can’t justify leasing such a large site on their own.’
‘The NSW Labor Country Conference held in Orange over the weekend has been the first real opportunity for this issue to gain traction with decision-makers,’ Mr Peters said.
‘Our community is incredibly grateful to all the ALP members who supported the motion on the weekend. We just can’t understand why both the NSW and Federal Governments have abandoned a blue-collar town like us as technology and economic conditions are changing and we have viable rail businesses that could move in tomorrow.’
‘Standing up for working communities like Lithgow is why the Labor Party exists,’ said Clr Cassandra Coleman, Mayor of Lithgow City Council.
‘Lithgow needs jobs,’ she said. ‘The rail industry and NSW need access to railway workshop space because there’s a chronic shortage. Our community and economy have lost jobs due to coal-fired power station and mine shutdowns. Government needs to help realign existing rail and new net zero rail manufacturing businesses with critical infrastructure. It’s not hard to see what the practical solution is, and there is a clear moral obligation to implement it. So, let’s all get to work.’
• END •
See text below for details of the Motion carried at the NSW Country Labor conference
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On Saturday 14 February, Clr Cassandra Coleman (Mayor of Lithgow City Council) put a motion regarding the future of the Lithgow Locomotive Workshop (see below) to the NSW Labor Country Conference that was held in Orange (14-15 February, 2026). The motion was carried unanimously, and has active support from the Rail, Tram & Bus Union (RTBU) and the Australian Manufacturing Workers Union (AMWU).
Return the Lithgow Locomotive Workshop to public ownership: creating jobs and a just economic transition to renewable energy related industries in Lithgow
Motion
The Lithgow Locomotive Workshop is a critical piece of railway infrastructure vital to a just economic transition in Lithgow. Viewed as a coal mining town, Lithgow needs to transition to new heavy industries such as battery-electric train manufacturing, compatible with a renewable energy-based economy. This will provide secure, meaningful, long-term jobs for working households and families as the region transitions away from fossil fuel-based industries.
The Lithgow Locomotive Workshop (or ‘Loco’ as it is known to locals), potentially provides the infrastructure needed to expand and secure existing freight rail businesses while at the same time support development of new net zero rail manufacturing.
Currently owned by Pacific National — who inherited the site after the NSW Government privatised all freight rail services in 2003 — the site has been left vacant for 20 years. It was put on the market in August 2025 in response to pressure from the Lithgow community and Lithgow City Council. After rejecting offers from competing rail freight hauliers, Pacific National is now poised to sell the site to a property developer, denying the rail industry access to this strategically significant site at a time when there is a chronic shortage of railway workshop space in NSW.
Council and community have asked the NSW and Federal Governments to purchase and take over stewardship of the site. If returned to public ownership, the site can be leased to private sector industries with commercially viable uses for it. This would enable one third of the industrial land within Lithgow City to be used to create local jobs and contribute to the local economy while serving the rest of NSW with critical rail services.
Resolution:
NSW Country Labor calls on the NSW and Federal Labor Governments to:
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Contact Pacific National immediately to begin discussions to purchase the site, with funding from the Federal Government and administrative responsibility from the NSW Government through Transport for NSW.
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Engage immediately with Lithgow City Council and local rail businesses, including those with net zero rail manufacturing capabilities, to discuss potential interest in leasing the site.
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Support local workers and rail manufacturing businesses by establishing skills development through the Future Made In Australia program that will support the transition to new industries compatible with a net zero future.
Contact details:
For more details contact:
David Peters, Lithgow Community Power Project, Chair 0427 117 001
Cl Cassandra Coleman, Mayor of Lithgow City Council 0429 234 163
Dr Michelle Zeibots, Lithgow Community Power Project, Deputy Chair 0408 437 687
