The board of CIÉ has given the go-ahead for a €500 million commercial development of the company's 17-acre site at Horgan's Quay in Cork city.
The Horgan's Quay project will be a mixed-use development, serving residential and commercial interests, with Manor Park Homes being appointed as developers for the project. An application for planning will now proceed.
Minister for Transport Martin Cullen announced the decision by the board of CIÉ to proceed with the development on a visit to Cork yesterday.
Earlier this year Mr Cullen urged CIÉ and Cork County Council to resolve their differences to advance the project.
Meanwhile, the Minister also announced an upgrade of Kent Station in Cork city. A redevelopment of 3,000 sq metres is planned at the station, comparable in size to the main Heuston Station in Dublin.
The customer facilities will include a ticket sales office, a new left luggage area and additional toilets as well as improved retail space.
Irish Rail plans the re-orientation of Kent Station away from the current entrance on Glanmire Road to a new entrance facing the development on Horgan's Quay and the city centre.
As part of the Horgan's Quay development, a new Bus Éireann bus station will also be built.
Speaking yesterday in Cork, where he was joined by the chairman of CIÉ, Dr John Lynch, Mr Cullen said he was pleased to announce projects which would regenerate the city centre.
"This is a hugely significant announcement for Cork city. The CIÉ board has demonstrated vision and ambition with the development of its lands on Horgan's Quay.
"A regeneration of this scale will transform the area and bring to life a prime location in the city. It will be a significant contribution to the on-going transformation of Cork city into a modern 21st-century European city."
In addition to Horgan's Quay and Kent Station, other rail investment in Cork includes the re-opening of the Cork to Midleton line, costing approximately €100m.
The re-opening of the Cork to Midleton line will include new stations at Midleton, Carrigtwohill, Dunkettle, Kilbarry and Blarney.
Irish Rail intends to apply for a Rail Works Order - the first step in the project - later this year and 67 new intercity carriages are already on order at a cost of €120 million.
The carriages will operate services between Kent and Heuston stations and will enable Iarnród Éireann to give customers an hourly service in each direction.
The delivery of the first of these carriages to Irish Rail from the manufacturer is expected in two months time. All the carriages are expected to be in service by mid-2006.