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Illawarra–Shoalhaven Transport Plan: A 20-Year Vision for Connectivity and Growth

The Illawarra–Shoalhaven region is set to benefit from a comprehensive new transport strategy.


The NSW Government has unveiled a draft Illawarra–Shoalhaven Strategic Regional Integrated Transport Plan – a 20-year blueprint to transform how people move around the region.


This is the first integrated transport plan for the Illawarra and Shoalhaven in over a decade, drawing on extensive data and community consultation.


The plan outlines a range of short, medium and long-term projects across all modes of transport to support this fast-growing region's needs.


For a region of over 427,000 residents – the third-largest regional economy in NSW – these investments are crucial to ensure growth is sustainable and livability continues to improve.


Major Infrastructure Upgrades

At the heart of the transport plan are major infrastructure upgrades designed to improve safety, capacity, and travel times. Key projects either underway or funded include:

  • Princes Highway Upgrades: Ongoing improvements along the Princes Highway corridor, notably a new Milton–Ulladulla bypass and upgrades around Jervis Bay Road, will create a continuous high-standard highway through the South Coast. These upgrades aim to reduce bottlenecks, take heavy traffic out of town centres, and make inter-city road trips faster and safer.


  • Mount Ousley Interchange: A $267 million interchange project at Mount Ousley (the gateway between Wollongong and Sydney) will separate local and highway traffic. This upgrade is set to improve traffic flow on the M1, enhancing the connection from the Illawarra to Greater Sydney.


  • New Motorway Ramps at Dapto: New south-facing ramps are being added on the M1 Princes Motorway at Dapto. This will give rapidly growing suburbs in West Dapto more direct Access to the highway, cutting commute times for residents and supporting new housing development.


  • Improved Rail and Public Transport: The plan also invests in public transport. A new fleet of intercity trains is being introduced on the South Coast Line, offering more comfortable and reliable service for commuters. There are also statewide funds allocated for expanded bus services, some of which will benefit Illawarra–Shoalhaven communities. Better bus connectivity means towns and suburbs will be linked more frequently to jobs, schools and town centres without relying on cars.


  • Local and Active Transport Projects: Smaller-scale projects, such as upgraded intersections, pedestrian paths and cycling networks, are also part of the strategy. These aim to improve everyday safety and encourage active transport. For example, intersection upgrades and traffic flow improvements in congested spots will make local driving safer. Improved footpaths and bike paths will make it easier to walk or cycle to shops, schools and beaches – enhancing both convenience and health for residents.


Livability and Community Benefits

The transport plan isn't just about moving cars and trains – it's designed to make the Illawarra–Shoalhaven an even better place to live.


By removing congestion chokepoints and improving transit options, residents can look forward to shorter and more predictable travel times.


Safer road designs and bypasses will mean fewer heavy vehicles rumbling through town centres, creating quieter and safer streets for pedestrians and local drivers.


Crucially, the plan emphasises sustainable, accessible travel. Upgrades to public transport, along with new walking and cycling infrastructure, will give people alternatives to driving.


Over time, making buses, trains, biking and walking more attractive will reduce traffic, lower emissions, and promote a healthier lifestyle in our coastal cities and towns.


Better transport also supports better services.


When a region has efficient connectivity, it becomes easier to deliver health, education and emergency services.


The plan dovetails with other regional improvements like the expansion of Wollongong Hospital, ensuring that as the population grows, communities remain well-served by healthcare and other essential services.


Even recreation and green space get a boost. For example, recent funding to improve Warrawong's waterfront parklands will enhance local amenity and resilience to coastal erosion, thereby improving overall quality of life.


Enhanced Connectivity

A primary goal of the Illawarra–Shoalhaven Transport Plan is to strengthen the region's connectivity – both internally and with other parts of New South Wales.


For residents, this means easier travel between home, work, and leisure.


The highway upgrades and new interchanges are set to smooth travel between key regional centres like Wollongong, Shellharbour, Nowra, and Ulladulla.


A trip that once crawled through traffic-clogged stretches or outdated intersections will become quicker and more efficient as upgrades are completed.


Connectivity to Greater Sydney will also improve.


The Illawarra is already a popular home for commuters who work in Sydney, and with a high-quality motorway link and improved rail services, commuting will only become more viable. In the longer term, planners are exploring ways to further cut travel times to Sydney – for instance, by investigating faster rail options or upgrading routes like Picton Road that link to the future Western Sydney Airport.


Local business groups have urged the government to accelerate such projects, arguing that better links to Western Sydney and Sydney's job hubs would unlock even more economic potential for Illawarra–Shoalhaven.


Within the region, connectivity enhancements mean that smaller communities won't be left behind.


New bus routes and more frequent services will connect towns and villages to regional cities, so people outside the main urban areas can more easily Access jobs, education and shopping.


Freight and logistics will benefit too – a more robust road and rail Network will help local producers and industries get their goods to Market (for instance, improved highway and port Access supports the region's emerging role in advanced manufacturing and clean energy).


Overall, the plan paints a picture of a region that is better linked together and better connected to the world beyond, which is vital as the Illawarra–Shoalhaven grows.


Impact on the Property Market

For current and aspiring property owners in the Illawarra–Shoalhaven, these infrastructure initiatives carry significant implications.


History shows that improved transport and infrastructure often boost real estate demand. When an area becomes easier to reach and more pleasant to live in, more people want to live there – driving up competition for housing.


As the region's transport links have improved over recent years, towns across Wollongong and Shoalhaven have seen increased interest from buyers (including Sydney "sea changers" attracted by the affordable coastal lifestyle).


In fact, when commuter Access from Sydney began to improve, the Illawarra property Market saw notable growth – local housing values jumped roughly 10% in 2020 alone as more families relocated south for a better lifestyle within commuting reach of the city.


The current transport plan is likely to continue that trend over the coming decade. Large-scale projects like highway bypasses or a new interchange tend to put previously overlooked suburbs on the map.


Areas with new or upcoming transport links – such as those near the Milton–Ulladulla bypass route or around new motorway ramps – could see heightened buyer interest thanks to easier commutes and safer streets.


Even in established suburbs, improvements such as reduced congestion and better public transport can make a neighbourhood more attractive.


Better connectivity also opens up new development opportunities.


For example, West Dapto's huge residential growth area will become far more accessible once the motorway ramps and supporting road upgrades are in place, potentially accelerating housing development there.


More broadly, the plan's focus on rail and bus improvements will enable higher-density living around train stations and transport hubs, as commuting by public transport becomes more convenient.


This transit-oriented development can create new communities and property hotspots near well-served locations.


It's important to note that the impact on property values is usually gradual and tied to project timelines.


Infrastructure projects can take years to complete, so property markets typically respond in anticipation (as plans are approved or construction starts) and again once the benefits are tangible.


We can expect a sustained positive influence on the Illawarra–Shoalhaven property Market spread over the next 5, 10, and 20 years as various projects from the transport plan roll out.


Overall, these infrastructure investments are investments in the region's future livability – and, by extension, they underpin long-term growth in property values.


As one recent analysis noted, upgrades that improve a region's livability tend to make surrounding areas more attractive to buyers and can lift property prices over time.


Conclusion

The Illawarra–Shoalhaven Transport Plan promises to reshape our region's landscape in more ways than one.


By delivering better roads, rail and public transport, it will enhance daily life for residents through safer travel and greater convenience.


It will knit our communities closer together and draw us nearer to Sydney, unlocking economic opportunities while preserving the coastal lifestyle that makes this region special.


For the broader Illawarra–Shoalhaven community – including home buyers, sellers, and investors – the plan offers a clear signal that the future is bright. Improved infrastructure and connectivity will ensure our cities and towns continue to thrive, remaining attractive places to live, work, and invest.



As this 20-year vision moves from planning to reality, local stakeholders have a chance to stay engaged.


The draft plan is currently open for public feedback, giving the community a voice in how these projects take shape.


It's a reminder that infrastructure isn't just about steel and concrete – it's about people.


With thoughtful planning and investment, the Illawarra–Shoalhaven's transport upgrades will support a more vibrant, connected, and prosperous region for decades to come.


Sources

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About The Auther

My name is Joel Hynes

I'm Joel Hynes, the founder of The Shoreline Agency, a trusted local buyer's agent dedicated to helping first home buyers, families, and investors make informed decisions in the Illawarra region. With years of experience, personal insights into relocation, and strong local connections, I guide my clients through every step of the buying process.

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