The NSW Government has directed departmental staff to help Shenhua, the world's biggest coal-mining company, find ways to transport coal from its proposed mine near Gunnedah, through Sydney and to the Port Kembla export terminal.

Documents detailing meetings between the company, Port Kembla Port Corporation and government agencies also show the Government will help Shenhua find more potential mines in southern NSW to make the Port Kembla option more attractive.

Options discussed included building 200km-300km of new rail line to access Port Kembla, including the partly built Maldon-Dombarton line.

Mr Rorris said the line, from western Sydney to Port Kembla, was the missing link.

"Regardless of one's view about Chinese coal interests, it does point to one thing very clearly - and that's how important critical parts of infrastructure are for our region, and for the expansion of the port," he said.

"I don't think you can get a bigger wake-up call than that, as far as what this region needs. It needs to be done and done quickly."

A feasibility study into the rail line is still awaiting Federal Government consideration.

Yesterday, the NSW Department of Trade and Investment, Regional Infrastructure and Services would not reveal what assistance Shenhua was being given in southern NSW, referring questions about its plans to the company's head office.

Greens MLC Jeremy Buckingham said the plan was "ridiculous" and coal power should be phased out, not encouraged.

"We don't want infrastructure in NSW being determined by Bejing and the world's largest coal company," he said.

"Freighting coal all the way from Gunnedah to Port Kembla is a ridiculous concept that should be abandoned."

From Port Kembla the coal would be shipped to Indonesia to be burned in a Shenhua-owned power station.

Shenhua missed the deadline for the expansion of Newcastle's coal terminal and is looking at the extra capacity proposed for Port Kembla, which has asked for expressions of interest in an expansion.

Shenhua has been conducting exploratory drilling around Gunnedah and hopes to gain final mining approval from the Government next year.