The $39 million station is part of the NSW government's Transport Access programme and will be located on the train line between Shellharbour Road and the Shellharbour Anglican College.

The station will include two platforms with stair and lift access, a car park with more than 100 spaces and an interchange with two bus bays, kiss-and-ride spaces and bicycle racks.

"It'll be a modern, new-look, slick railway station," Mr Ward said.

"We've been able to secure the $39 million to construct the station that will provide greater access for the Shell Cove and Shellharbour communities.

"As someone who uses public transport frequently, I'm very pleased there will be greater access."

Mr Ward said the Shell Cove station would be located closer to the growing populations in the area that would most likely be using it.

"It'll put the station close to walking distance for many residents in the Shell Cove and Shellharbour area.

"Once the North Kiama Bypass went through, Dunmore Road was closed which meant that the existing Dunmore station gets very little use.

"As a result we want to establish this station closer to the population and closer to a local school, which I have no doubt will benefit from this.

"There's strong growth in the Shellharbour, Shell Cove and Flinders areas and it's to cater to that growth."

Mr Ward said work on the station was due to be completed in a little over a year's time.

"I'm hoping to ride the first train into Shell Cove station somewhere towards the end of 2014," he said.