"Preparation is under way for the next stage of the Hillside project, which is further demolition work," KiwiRail construction delivery chief operating officer Robert Gibbes said.
"We are also carrying out detailed design work for the new mechanical workshop."
KiwiRail has reached out to potential suppliers for the $105million project.
Up to 20 locomotives or wagons could be worked on at a time at the workshop.
A new wagon assembly facility, where two wagons
a day can be assembled, is
also envisaged.
"The purpose of our market engagement is to inform suppliers about upcoming opportunities for their business to be part of Hillside’s redevelopment," Mr Gibbes said.
"Engagement also assists us to gauge the capacity of the local market to meet our requirements for the project."
The Government announced in May Hillside would get $85million for new facilities to assemble wagons.
That followed an injection of almost $20million from the Provincial Growth Fund in 2019.
Demolition of the old workshops started last year.
More than 100 KiwiRail staff will work at the site on completion. It is expected to start operating by late 2023.
