Masked men approached rail workers in Lurgan this morning (Saturday) and demanded they down tools and leave the area.
One of those masked men may have been armed, according to reports.
There was also a bomb threat phoned in as they contractors carried out work on a planned £25million upgrade of the line in the Co Armagh town.
Sinn Féin councillor Keith Haughian condemned the threatening of the railway workers.
He explained: “The rail workers were carrying out an upgrade to the main Belfast to Dublin rail line in North Lurgan when they were approached by masked men one of whom may have been armed.
“The workers were told to down tools and leave the area. A bomb warning was also made.
“Those responsible for these actions need to explain what they are about.
“The company doing the work to the lines have agreed to carry out significant work to a local GAA club free of charge and this is how these people repay the firms workers.”
Concluding councillor Haughian said: “It is long past time these individuals wised up and got off the backs of the people of North Lurgan.”
SDLP MLA Dolores Kelly added: “I am sure the whole community will join with me in condemning the threats made to railway workers this morning in Lurgan.
“Those responsible must remove this threat immediately to allow the £25m investment works to proceed.”
The incident follows on from a spate of hoax bomb alerts in Portadown on Friday, however, they are not being linked at this stage.