Passenger trains were disrupted in Maitland after part of a train wagon derailed at Telarah on Thursday afternoon.
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The Australian Rail Track Corporation (ARTC) confirmed the freight train derailed just before 3pm, causing about 80 metres of track damage.
The derailment impacted passenger and freight services heading to and from the North Coast.
In the afternoon and evening, passenger services travelling between Maitland and Dungog were terminated at Maitland Station and alternative arrangements were put in place to bus customers to their destination.
The derailed wagon was re-railed, temporarily repaired and removed from the main railway line overnight before it was placed into a holding yard.
The main North Coast rail line was re-opened at 4.10am on Friday.
The ARTC advised that there would be some minor delays to rail services as final repair works were completed over coming days in relation to the crossing loop at Telarah.
“We apologise for any inconvenience caused by this incident and appreciate the patience of our customers that were delayed as a result,” a spokesperson said.