External site works will start on Tuesday after the Moyne Shire Council received approval from Heritage Victoria and a conservation management plan was completed.

Moyne mayor Karen Foster said the renewal works were an important step towards extending the life of the historic asset and preserving the building's unique heritage characteristics.

"The railway goods shed is an iconic building of architectural significance, as the terminus of the historic railway that previously ran from Melbourne to Port Fairy, via Koroit and Warrnambool from 1890 until 1977," Cr Foster said.

"The goods shed played an important role in the development of our region and these renewal works will help to not only revitalise the historic link to our region's railway heritage, but also enhance the visual appeal of the space."

The first stage of renewal works will include fence removal, roofing and door repairs, re-painting and replacement of the timber platform and are expected to be completed in July - weather and building conditions permitting.

"A local contractor who specifically works on heritage restoration projects has been engaged to undertake the exterior works," Cr Foster said.

"In parallel to these works getting under way, we are also about to embark on a consultation process to determine future uses of the goods shed and look at activation options for the site.

"We want to preserve the heritage of the goods shed, while breathing new life into the space and making the Railway Place precinct a place locals can be really proud of."

The renewal project is funded by the shire and the federal government, through the local roads and community infrastructure program.

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