The NSW government will build a 150-space car park for commuters near Thirroul railway station.
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It is hoped the car park, due to be opened by August, will help ease parking woes in the surrounding streets caused by changes to train timetables, introduced in October 2013.
The timetable made Thirroul a "hub" station, where express services to and from Sydney stop. Under the changes, local services were to deliver commuters from surrounding stations to Thirroul.
But rather than catch those services, many commuters have opted to drive to Thirroul and park all day.
This has caused problems for local businesses, which claim a lack of parking has caused potential customers to go elsewhere.
It has also led to heated scenes on the streets as drivers argue over parking spaces or vandalise cars improperly parked.
The new car park will be on land on the western side of the rail line opposite the Bi-Lo car park - a 300-metre walk from the station.
It is land that had previously been put up as a possible location for a multi-storey car park. However, the 150 spaces will be single-level.
"I know parking around train stations is a big issue for the community," Transport Minister Gladys Berejiklian said.
"It can be very frustrating driving to the station and having to circle the streets looking for a car park."
Ms Berejiklian said planning and design work was already under way and construction would be completed this year.
The station is in Heathcote MP Lee Evans' electorate and he has received several calls and letters about parking in Thirroul.
"This is a big win for the community," Mr Evans said.
"Locals have told me how difficult it is driving around trying to find a parking spot, and that's why this government is investing in new parking spaces for customers."
Stephen Kennard, convener of the neighbourhood committee covering Thirroul, has been campaigning on the issue of the congestion caused by the timetable.
He said the car park was good news for Thirroul's future.
But it didn't address what he felt was the real problem: the timetable.
"I think it's something we might need in 20 years. Right now we need the timetable fixed," Mr Kennard said.
"The train timetable could be fixed simply, without all that cost. It won't be very popular in Thirroul because it doesn't solve the current problem."
ghumphries@fairfaxmedia.com.au