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Work on the cycle lane linking the central city to the West Harbour shared path will start later this year, after a resource consent was granted earlier this month.
The 3m-wide path will start at the St Andrew St car park, near the Dunedin Railway Station, and run alongside the railway line and under the Ward St overbridge, before entering Wickliffe St, where it will connect to the Water of Leith shared path.
A section of the railway line will be moved as part of the work.
Dunedin City Council transport group manager Richard Saunders said construction of the path would start within the next two months.
It was expected to take up to eight weeks to complete and cost about $700,000, Mr Saunders said.
Eventually it would provide a direct cycling link between the railway station and Port Chalmers, once the State Highway 88 shared path was completed.
The St Andrew St car park needed to be reconfigured to accommodate the cycle lane.
The entire car park would be closed for about two months.
Mr Saunders said as it was not marked, he could not say exactly how many parks would be affected but in the past the council has said it has a capacity of about 200.
Parking would be improved once the work had finished, he said.
In its 10-year plan, the council has set aside $20million for improving and adding to the city's cycleways.