HUNTER Valley Steamfest could take on a new look next year with local steam trains, and luxury train travel from Sydney to the region's wineries.

Hunter Valley Railway Workshops and Museum at North Rothbury hopes to have its four-star car vineyard service rolling by the end of the year with the aim of marketing it to complement next year's Hunter Valley Steamfest.

Managing director Michael Muter and operations director Mark Stapleton are the brains behind the operation, which they believe will keep Steamfest local and carry it into the future.

The men contacted The Herald after reading a report that said Steamfest could fold next year because of the exorbitant cost of staging the event and bringing in trains from outside.

Steamfest committee member Peter Garnham said it cost between $100,000 and $120,000 to bring three steam trains to the city.

Mr Muter and Mr Stapleton said they have three 10 class locos accredited for main line use and, with a few more carriages, they could help keep the show on the rails.

But the jewel could be The Hunter Limited, a luxury tourist train hauled by the R class 766, once an exhibit in a Bendigo park.

The loco, restored at Rothbury for $1 million, will carry passengers in up to nine luxury carriages from Sydney to Branxton at weekends.

Hunter Valley Training Company chairman Milton Morris has applauded the move.

Mr Garnham said another heritage train operator from outside the area had also expressed interest in the event.