The pay-and-display park will enable people to park all day for $5, council transportation planning manager Don Hill said on Wednesday.
The council leased a large area of derelict railway land from Amtrac about two years ago and had gradually cleared it and turned it into two car parking areas, he said.
The northern section nearest Halsey St had been subleased to the University of Otago, which is trialling a park and ride system, where staff can park their vehicles at no charge and walk to the university campus or catch a free shuttle bus.
Mr Hill said the land was earmarked for the realignment of Thomas Burns St, but it was expected the car parks would be in place for three to five years.
The park-and-ride car park opened in April. University property services manager Barry MacKay said last week the concept had been popular, with 211 permit issues so far and about 39 spaces still vacant.
