This is the Federal Pass track, which drops off the clifftop (commonly via Furber Steps or Scenic World's Railway/Cableway) onto the Jamison Valley floor and its rainforest before climbing back out - the full loop back to Katoomba is roughly 4.4km / 1.5-2 hours, so many walkers ride one of Scenic World's cars for one leg instead of climbing both ways.
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