Tasmania’s Port of Burnie is set to receive $12m worth of improvements on its rail and freight transport facilities in the next few weeks.

The Burnie Optimisation Project oversight committee, including TasPorts, TasRail and Toll Group , has finalised the commercial agreements to begin the improvement works at the port.

With this redevelopment, the port will have more space to accommodate freight trains and containers.

"The redevelopment will allow us to increase our capacity to carry freight in and out of Tasmania."

Toll Shipping and Toll Tasmania general manager Tony Stewart said: "The redevelopment will allow us to increase our capacity to carry freight in and out of Tasmania.

"A direct interface with the port and the railhead will help us take trucks off the roads and will increase our capabilities to move freight interstate and intrastate."

For this project, The Australian Government has contributed $4m, with $2m being funded by the Tasmanian government.

Foreign Affairs news said the financial assistance from Australia was part of $20m exporter assistance package announced in March 2012.

In addition, Toll Group and TasRail will provide an amount of $2m and $1m respectively. The remaining budget will be funded by TasPorts.

The project has been contracted to New South Wales contractor Fulton Hogan and it is expected to complete within a period of ten months.

TasRail CEO Damien White said: "The redevelopment will also deliver improved community amenity through the elimination of shunting along the Burnie foreshore."