Might be extended a little where the ramp is at the moment and perhaps a bit further. Going south, the adjacent retaining wall on the east side of the formation gets ever closer, with a road on top rising to the first overbridge. You might get 40m standage at a pinch. Easily sufficient for a 2-car D-train at (~34m) which could run on battery power, with layover charging at one end. Alternatively, the operator might talk to the VLR people at Dudley to try one of their new light vehicles on the route.
I think the curve would be too tight for heavy rail. Eventually, if a Metro tram extension or VLR line ever goes south of Dudley/Brierley Hill, then the vehicles could access Stourbridge Town via such a curve after approaching Stourbridge Junction station on one track if the existing Dudley line, with the other retained for freight. Potential light rail platforms near Junction would be a long way from the existing heavy rail platforms however, which suggests relocating the mainline station a little further north, adjacent to the carriage sidings for easier interchange: