The flyover replaces a crossing between the dedicated coal rail lines accessing the Port of Newcastle and the main line between Sydney and Brisbane. It removes a bottleneck that required coal trains to wait for up to an hour to cross the main line tracks to get to the Kooragang Island coal handling facility.

The flyover is the first major project the Australian Rail Track Corporation initiated under its 60-year lease of the Hunter Valley and NSW interstate rail systems, which began in 2004.

Vaile said the bottleneck had existed for many years but nothing had been done about it until now.

He said the work of the ARTC was key to government efforts to end the fragmentation of Australia’s rail system.

“Between us, the Government and ARTC are investing $2.4 billion over five years into rebuilding Australia's rail infrastructure,” the minister said.

Following the completion of further projects up until 2011, the capacity of the Hunter Valley rail network is expected to be 145Mtpa.

Vaile also used the project opening to take a swipe at the Newcastle City Council’s plans to cap coal exports from the region as a means of controlling climate change.

“We can all be thankful that the council doesn't have the power to carry out its absurd idea, because it would strip-mine the city's future,” he said.

“There is a much better way to deal with climate change than passing symbolic motions.”

These included the development of low-emissions technologies such as clean coal, Vaile said.