A teenage boy who had been riding his bike to school in Raymond Terrace on Tuesday morning died after being hit by a bus.
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Police said the 17-year-old had been riding along Mount Hall Road about 8.30am when he crossed the intersection at Clyde Circuit, not far from Irrawang High School, where he was hit by a bus.
"Despite best efforts by paramedics, the boy died at the scene," a NSW Police statement said.
A Department of Education spokesman confirmed on Tuesday that the boy had been a student of Irrawang High School.
"The school has extended its sincere condolences to the family and many friends of the student," a DoE statement read.
"Counselling support is in place at the school and other local schools for students and staff who may have witnessed or been affected by the incident.
"The school has extended its appreciation for the care and compassion of its parents and the broader school community at this very challenging time."
In light of the tragic incident, the school has postponed its Showcase performances that were due to be held on Tuesday and Wednesday nights "to a date to be advised".
A NSW Ambulance spokeswoman said five ambulance crews were called the scene about 8.30am on Tuesday. Police, NSW Fire and Rescue and Port Stephens SES also responded to the scene of the incident.
Officers from Port Stephens-Hunter Police District established a crime scene along Mount Hall Road.
An SES spokesperson said the unit, based in Raymond Terrace, assisted police at the scene with tarpaulins.
The Westpac Rescue Helicopter was tasked to respond to the incident, but was later called off.
"It was an incredibly distressing scene for emergency services and bystanders who witnessed the incident," Inspector Matt Hawke from NSW Ambulance said.
"Ambulance chaplains and clinical psychologists also responded supporting witnesses and emergency services personnel.
"It is a tough day for everybody involved."
Speaking outside Links Drive, just off Mount Hall Road where police were stationed on Tuesday morning to direct traffic away from the crime scene, long-time Raymond Terrace resident Peter McMahon said the tragedy had "shaken everyone".
"In a small town, it's a bit of a shock for everyone. Particularly the locals," he said.
"There's a lot of nice young kids around here going to the high school.
"I've been living in this area for 20 years... You get things that happen but this is pretty much a one-off as far a fatal accident is concerned. I don't remember the last one.
"You get a lot of kids in a confined area going to school, some walking, some getting off buses. At that hour in the morning, there's bumper-to-bumper buses.
"It's very unfortunate that something like this has happened."
Port Stephens MP Kate Washington wrote on social media on Tuesday afternoon that news of the incident was devastating.
"Raymond Terrace's heart is breaking right now. My deepest condolences to family, friends, loved ones and the entire school community," she said.
The police Crash Investigation Unit is now making inquiries into the incident.
Police said the bus will be subject to further examination.
The 41-year-old male bus driver will undergo mandatory blood and urine testing.
Anyone with information about the incident is urged to contact Crime Stoppers on 1800 333 000 or nsw.crimestoppers.com.au.