Design approvals had been delayed, but a Dunedin City Council staff report said this had been resolved and safety upgrades associated with a cycleway extension should be completed this month.
The final fencing, signage and asphalt works were under way, KiwiRail South Island operations general manager Mark Heissenbuttel said.
All rail and signalling or safety infrastructure had been installed, tested and was ready for service, he said.
A portion of the cycleway design around the Ward St overbridge area required alterations because of site constraints and it was going through final stages of the KiwiRail re-approval process, he said.
The St Andrew St work is part of a cycle path between the Water of Leith Bridge and Portsmouth Dr, due to be completed by the end of the year.
That, and completion of the State Highway 88 cycleway and Peninsula Connection project, will link up Port Chalmers and Portobello with central Dunedin.
The Portsmouth Dr shared path is popular with people running, walking, biking, scooting and skateboarding.
KiwiRail is also shifting 1.5km of the Main South Line between Blanket Bay and St Leonards and 800m of the Port Chalmers branch line between Sawyers Bay and St Leonards to accommodate the SH88 shared walking and cycling path.
