Cessnock councillor Dale Troy, who has been contacted by concerned ratepayers, is leading the charge and will raise the issue at a council meeting next week.

Cr Troy, who will contest the seat of Cessnock as an independent at the March state election, said residents were concerned about "heavy industry" being located on their doorstep and in the middle of a major residential growth area, with Huntlee and Anvil Creek surrounding the site.

Pacific National transports more than 80 per cent of coal within the Hunter Valley and plans building the site to cope with the forecasted 129 per cent increase in coal export through the Port of Newcastle during the next five years.

Pacific National divisional general manager David Irwin told the Newcastle Herald in July that the company was working with the NSW Department of Planning on the proposal.

He said the company had bought the site, about a kilometre from the nearest residential area, in September 2008.

Yesterday Cr Troy said there was concern about the location, the heavy nature of the industry and significant noise and traffic impacts.

"People are not fully aware of the impact that light spillage, B-double movements, construction-phase noise, not to mention the environmental impacts that this will have on their community," Cr Troy said.

"This proposal is needed and will generate significant employment and will support local industry, but you just couldn't place it in a worse location.

"This project is being considered by the State Government, not the council, and residents are getting frustrated they don't have anyone local to talk to about the project who will be involved in the decision-making process."