Transport for NSW has no plans to build a tunnel or bridge at the Adamstown railway gates and says better "immediate opportunities" exist to invest in Newcastle's transport network.
Almost a year after Labor won government for the first time since 2011, the transport department has reiterated its opposition to spending money on the much-maligned level crossing.
Transport for NSW has costed a bridge at the Glebe Road crossing but come to the conclusion other projects should be a priority.
"Transport for NSW believes there are other more immediate opportunities to invest in the transport network in the Newcastle area that can provide a better outcome for the community in terms of safety, efficiency and value for money," an agency spokesperson said in response to questions this week from Newcastle Herald columnist Bradley Perrett.
"As such, there are no plans for a grade separated crossing of the rail line at Adamstown at this time."
Newcastle Labor MP Tim Crakanthorp said TfNSW's investigations had shown upgrading nearby intersections would "provide significantly more benefits to the performance of the overall road network and more road users, compared to upgrading the crossing".
He said Sydney Trains was working with Newcastle council and TfNSW on installing traffic lights at the intersection of Park Avenue and Glebe Road.
"This will be connected to the railway level crossing system," he said.
"The project will also be modifying the railway signalling to optimise the road closure times within the constraints of the signalling system."
An alternative to the railway gates has been on the agenda since the 1950s.
A 2007 study by the then Roads and Traffic Authority found the gates closed for more than six hours a day, a figure which would drop to two hours if freight trains were removed from the line.
TfNSW said it had carried out "substantial work" on the long-awaited Lower Hunter freight rail bypass from Fassifern to Tarro but the government had not committed funds to the project.
The spokesperson said the freight corridor "when completed will have a positive effect on the operation of the Adamstown level crossing".
"This project is in the early planning stages with funding and timeframes for the delivery of the project still to be determined."
TfNSW has sold off land near the Adamstown gates which had been acquired for a bridge and now says "grade separation" at the rail line will have a "substantial impact on surrounding properties and the broader community, including a local school and numerous residential properties".
"A grade separation would also increase traffic volumes along this corridor and reduce the performance of other intersections in the area," the spokesperson said.
