Irish Rail will formally ask Minister for Transport Martin Cullen in the coming weeks for permission to reopen the Cork to Midleton railway.
The line is to become part of a €100 million development of the commuter rail network around Cork city, which also includes services on the Mallow line.
The new commuter service is designed to meet the long-term needs of the rapidly expanding east Cork region, to alleviate traffic congestion in and out of the city at peak times and to attract industrial and commercial development.
Documentation formally requesting permission from Mr Cullen is to be lodged early in May and a public inquiry will then be held. It is anticipated that construction work on the Midleton line will begin later this year and commuter services will start in 2008.
The reopening of the line, first announced by then minister for transport Séamus Brennan in April 2003, was included in the Government's €35 billion transport strategy last year.
Transport 21 also provides for five additional commuter railway stations at Blarney, Kilbarry, Dunkettle, Carrigtwohill and Midleton.
After the development of Dublin's Luas the service to Midleton will be the first major extension of the rail network in the Republic for more than 100 years.
At a cost of about €100 million the new Cork commuter service will provide for peak hour services every 15 minutes between Cork city and Midleton, a distance of 20km (12 miles), involving the construction of 10km (6 miles) of new track, three new stations and new signalling
The plan will also involve enhanced services between Cork city and Mallow, a distance of 35km (22 miles), on the main Dublin-Cork line. New commuter trains are to be provided at a cost of almost €30 million.
New park-and-ride facilities are also being planned for new stations at Dunkettle (750 spaces), Blarney (200), Carrigtwohill (450), and Midleton (600).
A study by Faber Maunsell estimated that revenue support would be needed only during the first six years of operation.
The reopening of the Midleton line is part of the Cork Area Strategic Plan (Casp), which was commissioned by Cork city and county councils in 2000. It is also supported by Cork Chamber of Commerce.
Casp contains proposals for further expansion of commuter rail services in the longer term, including extending the Midleton line to Youghal.
That extension is not likely to happen in the lifetime of Transport 21, which covers the period up to 2015.