A KiwiRail spokesman said progress for the multimillion-dollar facility was on track, and it was set to begin assembling wagons early next year.
Twelve Dunedin staff had been hired so far, but about 45 roles were set to be established for wagon assembly in total.
The wider facility was expected to open in mid-2024, the spokesman said.
"The mechanical workshop will be used by KiwiRail’s rolling stock asset services for loco and wagon projects, similar to the work that’s currently undertaken at Cumberland St.
"The networks building will be used by staff relocating from Strathallan St.
"We expect over 100 staff to be working at the site once it is fully open."
A significant number — about 80-90 people — would be new staff, the spokesman said.
KiwiRail Hillside had $20 million of funding from the Provincial Growth Fund to rebuild the mechanical workshop, along with $85m of government funding to build and operate a new wagon assembly facility.
Rail and Maritime Transport Union general secretary Todd Valster said it was fantastic to have the workshops revived after closure in 2012, a move that was a "huge kick" for Dunedin.
The facility would carry out heavy engineering, benefit other businesses in the area, relieve pressure on Christchurch and provide work into the future.
"It’ll be a training ground for apprentices, so there’s a future there for many generations, and we’re very, very pleased that it has been reopened."
