Gosford Council is to seek $100,000 "pre-construction funding" to further investigate three railway crossing options at South Woy Woy.

The options would see a bridge or tunnel across the railway line at the bottom of Bull's Hill, with a possible deviation of Woy Woy Rd to provide a more direct route from the quarry to the bottom of Bull's Hill.

These options were those most favoured by the South Woy Woy Progress Association, the Peninsula Chamber of Commerce and the Ettalong Ratepayers and Citizens Progress Association, as well as the bulk of the public response to the exhibited plans.

Of 105 submissions, 81 favoured a tunnel and six supported the Woy Woy Rd deviation through the National Park.

Most respondents living in the vicinity of the council's previous "overbridge" proposals objected on grounds of scenic degradation, loss of property value, noise, over-shadowing, effects of lighting on the bridge and alteration of traffic patterns.

In a detailed submission, the Chamber of Commerce stressed that the crossing should be considered in the context of traffic management across the Peninsula, traffic destination and purpose, population growth, redevelopment of the Ettalong Beach War Memorial Club, the fast ferry and the upgraded status of Woy Woy Rd.

The submission of the South Woy Woy Progress Association expressed concerns with "concepts incorporating flyovers of elevated roadways that are so highly intrusive and sensitive to the South Woy Woy community".

The association suggested that Shoalhaven Drive be re-opened and upgraded at the existing underpass "for free traffic flow". Council officers did not favour the suggestion.

The Umina High School Council was opposed to any option that "would re-route extremely heavy traffic past Umina High School and create a major safety problem before and after school hours in the vicinity".

The Ettalong Ratepayers and Citizens Progress Association unanimously supported an underpass of the railway line at the foot of Bull's Hill, joining Woy Woy Rd to Nagari Rd.

Council officers said that to "do nothing" about the crossing was "unacceptable as a long term strategy" and suggested further assessment of favoured options.

The railway crossing is estimated to cost from $5.3 million for a tunnel alone, up to about $20 million if the Woy Woy Rd deviation is included.

It is understood that because the project was a combination of level crossing replacement and work on classified regional roads, the council may only be responsible for one sixth the total cost.

Pre-construction funding is required to further develop the options and would cover an environmental impact assessment, three-dimensional modelling and detailed site surveys.

It is understood the Roads and Traffic Authority may consider providing pre-construction funds, on the basis that the proposal is primarily a safety improvement initiative.

The council also decided to ask both Liberal and Labor candidates for Peats to support a request for a $100,000 grant from the State Government for the work.