Transport Minister Gladys Berejiklian says the yet-to-be-named $39 million station at Dunmore is on budget and on time to be open by the end of the year.
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"Platforms are now in place and locals can start to see what this new modern and accessible station will look like," Ms Berejiklian said as she inspected the site on Wednesday afternoon.
Ms Berejiklian said the station, which has at times been called Flinders or Shell Cove, was the only new station being built on an existing rail line and was recognition of the growth taking place in the Shellharbour City area.
"It demonstrates that where we see people moving into an area, we will provide new facilities," Ms Berejiklian.
As for the station's name, Ms Berejiklian said the government was waiting on advice from the Geographical Names Board after Flinders and Shell Cove were both ruled out as options because the station was not within the boundaries of either suburb.
The station is officially located in Dunmore.
"[The GNB] have told us what it can't be called, but they haven't yet told us what it can be called," she said.
"The community has made its voice very clear they want it to be called Shell Cove station, regrettably the GNB has not backed those suggestions.
"But what's in a name? It is important this station is being built."
The plan is to close the existing Dunmore-Shellharbour station, but when that happens will depend on when the unnamed station opens.
When complete the new station and interchange will include CCTV surveillance, lifts and a footbridge between platforms, plus a car park with about 100 spaces.
Kiama MP Gareth Ward said the new interchange will benefit the people of Shellharbour and Shellharbour Village and the growth areas of Flinders and Shell Cove.
The new interchange will comprise two bus bays, four kiss and ride spaces, a taxi zone, bicycle racks, and have access to Piper Drive off Dunmore Road.