Dubbo MP Dugald Saunders hits back at Labor's claims Mindyarra Maintenance Centre will be a 'white elephant'

The opposition leader has slammed the overseas built Regional Train Fleet while premier Dominic Perrottet conceded there has been issues upgrading the ageing regional XPTs, which service Dubbo and go as far as Melbourne and Brisbane.

"There's no doubt there have been challenges," Dominic Perrottet told the ABC on Tuesday.

"We have invested record amounts in transport infrastructure, and when you do that there are challenges and problems that do come along the way."

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In a confidential report, advisory body Infrastructure NSW said the Regional Rail Fleet Project was almost three years behind schedule and "most likely $1 billion over budget", the Sydney Morning Herald reported.

AAP reported the core issue was the "inability" of Transport for NSW to scope the project before going to tender and awarding the contract to Spanish firm CAF in 2017.

The report also warned the Mindyarra Maintenance Centre at Dubbo - which was initially planned to be finished in 2022 - could become a drain on taxpayer funds if CAF continues to delay its delivery of the trains.

The fleet will replace the XPT fleet, which has been on the tracks for about 45 years.

"Passengers in the regions and passengers travelling interstate are going to be stuck on ageing XPT trains for years because the Liberals and Nationals have bungled this project," Jenny Aitchison, NSW Shadow Minister for Regional Transport, said.

"These trains are already three years late, now passengers will have to wait longer, and the maintenance centre at Dubbo which the government has promised again and again, could be in mothballs for years."

While admitting to the delay, Mr Saunders said the comments are "disingenuous" and promised the rail maintenance facility will be "one of the greatest things for the Dubbo region that's ever been seen".

"The project is absolutely going to be delivered," the Dubbo MP said of the Regional Train Fleet.

"Again, it got held up literally for two years. The software developers working on this were not available for two years during COVID so everything got pushed back. It's been fast-tracked again.

"There were design modifications made to make sure we actually get the trains we want, not what was originally thought what we'd be okay with. Part of it is making sure you get what you want, which can happen with any contract.

"Whether buying a new house or a new car, if it's the wrong colour you're not going to buy it. There's been a few of those little things and some of those negotiations have taken a little longer than anyone would want, after a couple of years of COVID.

"And locally, in the wet weather everything slowed down."

AAP reported the Regional Rail Fleet project was expected to be completed in five to six years, but the end date is now more likely late 2025.

Mr Saunders is hopeful the facility will handle its first lot of new trains later this year.

He said the location will be "world class" and the fit-out of the admin block is close to completion while other areas are progressing.

"There is no expectation of any massive cost blow out but with everything, it's gone up," Me Saunders said.

"Whether you're building a house, the Sports Hub or a train facility of the trains, everything has gone up because of the pandemic.

"Everything has risen by anywhere between 30 to 60 per cent. There just will be more of a cost outcome because everything has changed.

"But we will deliver it, it won't be a white elephant."

Mr Saunders added the facility will also be a boost in terms of employment and opportunity.

"As soon as it's done there will be trainees there getting ready to work on the trains. Part of this facility is linkages with our training providers for welders, mechanics, boilermakers and people who will specialise in metal stuff for the wheels and all that will start," he said.

"People will be on-site getting used to the gear, training, starting apprenticeships and all that will start and then the trains will hopefully be here by the end of the year to get final fit-out and all that work will happen locally.

"A hold-up? Yes, sometimes hold-ups happen and it's hard not to when you've had two years of the pandemic but this will not be a white elephant and this will be one of the greatest things for the Dubbo region that's ever been seen."

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