Papua New Guinea's Chamber of Commerce in Port Moresby says the idea of a national railway needs thorough research and consultation.
A feasibility railway study has already been done by engineeers at the University of Lae.
The Chamber's president David Conn says transport in PNG is a big hurdle for business and trade, with main roads like the Highlands Highway needing major rehabilitation work.
He says a railway in PNG's mountainous terrain will be difficult and costly to build.
"Well certainly topographical issues. I mean if you're talking about taking a railway to connect major cities between Moresby and Lae, I mean the topography between those two centres is horrendous. And still we don't even have a road based over there and that's still coming and being mooted as well, so yeah its come out a little bit out of left field in terms of a railway."
Mr Conn says the last thing the country needs is a harebrained proposal that costs a lot of money but ends up gathering dust.
