Workers began repairs to the Blue Mountains rail line on Saturday following a landslip near Mount Victoria.
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But restoring full access to the section between Mount Victoria and Katoomba "will take weeks", NSW Minister for Regional Transport and Roads, Sam Farraway, has warned.
The National Party MP posted the update on social media, saying the embankment was still shifting up until Saturday, delaying the start of the repair work. But about 80 workers were able to access the site yesterday.
New aerial photos posted by Mr Farraway show the size of the landslip and how close it came to the rail line
"Restoring full access to the weather-hit section of track between Katoomba and Mt Victoria will take weeks but we are working to minimise the impacts on freight and passenger services," he said.
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"Damaged signalling equipment and electrical wiring has been removed while planning to rebuild the embankment, which slipped some 60-plus metres downhill, is underway.
"Myself and Transport for NSW have been in talks with the freight industry multiple times each day to update those who may need to find alternatives to move goods.
"We are working closely with rail operators and looking at options to prioritise freight movements through a single section of the track before month's end."
Mr Farraway said engineers and planners are "confident they can find a safe way to ensure critical goods, like coal and wheat, can pass through on one side of track before diesel and electrified passenger train services can get the all clear to run in both directions".
"There's a big job ahead but I'll keep the community and freight industry informed along the way as crews work hard to get the line back online safely for our customers."
Trains are running to a reduced frequency and changed timetable between Lithgow and Mount Victoria, and also between Katoomba and Penrith. T1 Western Line trains run between Penrith and the City.
Transport for NSW has advised commuters: "You may have to change multiple times to complete your journey. Please allow plenty of extra travel time and plan ahead at transportnsw.info."