A KiwiRail spokesman said demolition of the workshops restarted on Wednesday, following the project coming to a halt at the beginning of lockdown.
"KiwiRail has strict procedures in place to ensure the contractors follow the Covid-19 Level 3 requirements."
He said its team was able to continue planning and other project work during Level 4.
It is part of KiwiRail’s plan to revitalise the workshops and make way for improved facilities, which would allow KiwiRail to maintain more locomotives and wagons, and undertake new types of work.
The project would open the way for Hillside to become a centre for engineering excellence in the South Island, attracting complementary businesses, such as manufacturing, fabrication and potentially marine engineering to the site.
KiwiRail property group general manager Stephanie Campbell said the Government invested $19.97 million into the redevelopment project last October through its Provincial Growth Fund.
It would become a vital part of KiwiRail’s South Island freight and tourism operations, creating about 40 new jobs during the next three years.
It is expected the demolition work will be completed by the end of the month.
