North Rail Yards on the right track

After decades of sitting idle, the 4.5-hectare North Rail Yards site is finally seeing progress, with restoration of heritage buildings and site decontamination well underway.

At today’s Ordinary Council Meeting, councillors voted to unlock $35 million in State Government funding and reduce project risk by approving a staged transfer of lots to Flinders St Rail Development.

Established in the 1880s, the North Rail Yards served as a Queensland Rail maintenance and construction depot for more than a century before closing in 1990. Council purchased the site in 2015 with a vision to transform it into the southern gateway to Townsville’s city centre.

In December 2022 Council established the North Rail Yards Ltd company to kick-start the critical project and mid-last year the State Government committed $35 million for remediation and heritage stabilisation works to make the site development-ready.

Acting Mayor Ann-Maree Greaney said late 2024 marked a major milestone when Council awarded development of the four lots to local developer BM Webb under the Flinders St Rail banner.

“Last year we secured BM Webb, one of Townsville’s most respected developers, to take on this mammoth project,” Cr Greaney said.

“Given the site’s century-long use as a rail depot, contamination and old, heritage buildings were a major issue, leading to significant remediation costs. We’re thrilled Brad and his team saw the potential and invested to bring this vision to life.”

With remediation on the site and heritage buildings progressing, Council will now dissolve North Rail Yards Development Ltd to access State Government funds as advised by Queensland Treasury.

“The North Rail Yards Ltd has achieved its goal by securing a developer, and now it’s time for Council to take the next step,” Cr Greaney said.

“Councillors voted today to dissolve the company to enable access to those funds, to allow us to allocate milestone payments to Flinders St Rail as works progress. While the State Government has committed $35 million, Brad and his team are expected to match that investment privately, driving economic growth in the city.”

With Townsville’s population forecast to grow by at least 40,000 in the next 15 years, Cr Greaney said the redevelopment will play a vital role in delivering higher-density housing and attracting further investment.

“Townsville could see 40,000–60,000 new residents over the coming decades. Projects like this are essential to meet demand and revitalise our city,” she said.

“Over time Council can transfer the lots, enabling the developer to complete the project while assuming full risk and protecting ratepayers.

“Council recognised the potential of this vacant site and worked to secure funding and remediation. Now, under Flinders St Rail, we’ll see its full potential realised.

“This is a once-in-a-generation opportunity to transform a large-scale derelict site into a vibrant precinct that celebrates our heritage and supports Townsville’s future growth,” Cr Greaney said.