The Premier, Lara Giddings, and the Minister for Economic Development, David O'Byrne, today celebrated an exciting new future for the Hobart railyards.

They joined the Federal Infrastructure and Transport Minister, Anthony Albanese, for the announcement of $50 million of funding to remediate the Macquarie Point site for future development.

Ms Giddings said the waterfront site had huge social and economic potential.

"We understand the value of Hobart's working port, but also the opportunity to revitalise the city and this project provides an exciting opportunity to transform a part of the waterfront that has not been accessible to the public before," Ms Giddings said.

"This is literally the gateway to Hobart, be it by car or cruise ship, and we now have a once-in-a-lifetime opportunity to create a development that makes a striking and enduring first impression.

"This builds on the work the Tasmanian Government has done since 2009 to make the Hobart waterfront a dynamic and inviting place that attracts people to work, socialise and live - including the $15 million redevelopment of Princes Wharf Number One, the IMAS development and the work that will soon begin on the Macquarie Wharf Number 2 shed.

 "I congratulate Mr O'Byrne and Mr Albanese for working together over many months to make this investment possible.

"I'd also like to thank my Federal Labor colleagues, Carol Brown, Julie Collins and Lisa Singh, and the Federal Member for Denison, Andrew Wilkie, for their co-operation on this project.

"Both the initial clean-up and redevelopment process will create new jobs and opportunities for years to come - not to mention the visual and social benefits of creating new public space on the waterfront."

Mr O'Byrne heralded the announcement as a major milestone for Hobart and Tasmania.

"The railyards represent 8.4 hectares of new social and economic opportunity for our community," Mr O'Byrne said.

"We've seen other capital cities around Australia positively transformed by large-scale multi-use development on their waterfronts.

"Melbourne's Docklands and Sydney's Barangaroo are two obvious examples. Hobart now has a once-in-a-generation opportunity to do the same.

"Ultimately, redevelopment is still some years away, and will involve close consultation with the Hobart community.

"But today's announcement sets-up the railyards for a bright and exciting transformation that all Hobart residents can be optimistic about," he said.

Once remediated, potential developments on the site could include:

·       Inner city living

·       Tourism development

·       Education

·       Science and research

·       Arts and cultural development

·       Public open space

Mr O'Byrne said the package also includes upgrades to Brooke Street Pier that will benefit local ferry and cruise services.

"We recognise the strategic importance of Brooke Street Pier for many local businesses, and appreciate the site's great potential," Mr O'Byrne said.

"Today's announcement is the culmination of the Federal and State Governments working closely and productively to get good outcomes for Tasmanians," he said.

The eventual redevelopment of the railyards site needs to complement existing businesses in the Hobart CBD, and retain the working port.