The state's shadow treasurer Daniel Mookhey says the Lower Hunter could undergo a renaissance as a rail manufacturing hub with the right government support.
Speaking at a regional roundtable in Newcastle on Monday, Mr Mookhey said the Opposition's commitment to build 50 per cent of the state's rolling stock locally was the key to reviving the region's manufacturing industries.
"Given that Newcastle has led the world in train manufacturing, under our policy Newcastle can lead the world again," he said.
"We need to partner with [rolling stock manufacturers] at Broadmeadow and Cardiff. What Downer EDI is telling us is that they need predictable orders. They are willing to make the investment if they know there is going to be a buyer who will be there in a decade's time, not just in a day's time. That's the type of change we want to implement if we get a mandate next March."
Labor's policy is modelled on similar plans in Queensland and Victoria. The Andrews Labor government has invested in more than 300 new Victorian-built trains and trams since 2014.
At least 50 per cent of all new rolling stock orders must be made locally under the government's local content policy, with the industry now employing up to 10,000 people.
In his state budget last week, Opposition Leader Chris Minns said a Labor government would set local-content targets, increase tender weightings and set up a new commission to back manufacturers.
Labor estimates NSW has lost 42,000 manufacturing jobs in the past decade, while Queensland has gained 6000.
"What's more, we've missed out on 4000 more jobs due to offshoring of major infrastructure and transport projects as a result of decisions by the NSW Liberals," Mr Minns said.
Mr Mookhey also met with Port of Newcastle representatives to discuss the need for a container terminal.
Mr Mookhey called on the state government to release the full details of the 2014 Port Commitment Deeds, which constrain the Port of Newcastle from establishing a competitive container operation.
"We are very respectful to the port and its desire to reinvent itself so it gives Newcastle a future. We are equally respectful of the fact that we didn't do these deeds," he said. "We still don't know what we could be up for [if the port commitment deeds are overturned]....We make no secret of the fact that it is a really difficult issue to resolve. A Labor government's attitude will be informed by what is in the public interest, not what is in the government's interest at the time it is looking to flog off public assets."
