In January, 1959, a contract was placed by the New South Wales Government Railways with Commonwealth Engineering Limited of Granville for the construction of ten 550 hp (410 kW) 0-6-0 diesel-hydraulic shunting locomotives. They were specifically intended to replace aging steam locomotives in use at Port Kembla,
Designated the 70-class, the class leader, 7001, was not delivered until 15 August 1960. After weighing, the unit worked a 400-ton test load to Botany the following day. As the new servicing facilities at Port Kembla were not then complete, 7001 was temporarily allocated to Enfield (Delec) and worked local services. On 28 September 1960, 7001 worked its first passenger train, a railway employees' train from Sydney Terminal to Chullora workshops.
By the end of 1960, a further three of the class had been delivered. 7003 ventured out on to the Richmond line with the afternoon passenger train from the Brickworks (Abattoirs branch) on two occasions in 1961.
Whilst the remaining units had been delivered by mid-May, 1961, 7007 was not accepted by the NSWGR until February, 1962. Multiple unit 70s became regular visitors to the Campbelltown to Camden line prior to its closure, working coal trains from Narellan.
By early 1984, the use of 70-class on the Port Kembla industrial network was at an all-time low. Only one or two were needed for the day shift. A further three would be occupied on shunting duties at Port Kembla North, with, perhaps, two more on transfer work.
7009 was taken out of traffic on 10 February 1984 and sent to Eveleigh. 7008 followed on 21 June 1984. 7002 was the next to go and on 13 August 1984, all three were officially withdrawn. 7007 failed on 12 September 1984 and was set aside at Port Kembla, to be joined by 7010 in June the following year. 7003 was subsequently withdrawn after a wheel sheared off.
7008 was purchased by the Dorrigo Steam Railway and Museum in 1985. 7002 and 7009 were both scrapped at Simsmetal, Mascot.
48-class took over all shunting and transfer duties at Port Kembla from 12 November 1984. Three 70-class were to be kept operational and the remainder kept spare. By early September 1986, only two locomotives were available for local working, 7006 and 7010. 7010 last operated on 10 September 1986 and 7006's last regular day in service was the following day.
Of the locomotives remaining at Port Kembla, 7001, 7004, 7005, 7006 and 7010 were all sold to Simsmetal for scrap. 7003 and 7007 were sold to the Emu Bay Railway [EBR] in Tasmania. However, the EBR were only interested in the transmissions from their purchases and, as they were not anxious to send staff from Burnie to dismantle the locomotives, they entered into an agreement with the Dorrigo Steam Railway and Museum for that group to provide EBR with the reconditioned transmission they had on hand in exchange for locomotive 7007. 7003 was cut up by the DSR&M and the transmission supplied to EBR.
7010 was purchased by the DSR&M, apparently from Simsmetal, giving it three complete units. 7006 was sold by Simsmetal to local Wollongong enthusiasts who restored the locomotive to operating condition at the New South Wales Rail Transport Museum. This locomotive was on loan to the Powerhouse Museum, but recent photographs in the Winter 2010 RHC update show the loco back at Thirlmere.
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