"The first log train is expected to run on the line by the end of the year.
"This is a good time to remind people to expect trains or machinery travelling on the track at all times.
"It is six years since the line between Wairoa and Napier was in regular use, so people will need to take extra care around it now that work is under way.
"The work will see an increase in movements along that track. Everyone needs to expect trains and other rail vehicles using the line at any time from either direction.
"They should only cross the line at level crossings – to cross the line anywhere else is both dangerous and illegal."
The work is funded through a $5m Government grant from its new Provincial Growth Fund.
Parliamentary Under-Secretary for Regional Economic Fletcher Tabuteau said a key component of the coalition agreement between Labour and New Zealand First was the establishment of a $1 billion-a-year regional development fund.
"This Government is committed to our regions and the Provincial Growth Fund demonstrates how serious we are about providing economic opportunities to all parts of New Zealand."
Hawkes Bay Regional Council had already set aside $5.4m towards the project.
Council strategic development group manager Tom Skerman said the Government's additional $5 million financial injection was huge validation and a boost for the project.
The council would now continue to work on commercial arrangements with customers who will use the line.
He said HBRC, KiwiRail and Napier Port wanted to ensure the introduction of additional funding would achieve the Government's regional growth and network resilience aspirations.
Local Government NZ president Dave Cull said the country's economic growth strategy needed to consider the nation as a whole and the Government's commitment to much greater investment in regions was a welcome step.
"Ensuring our regions are equipped to meet the challenges ahead is crucial and the Provincial Growth Fund will be a significant tool in achieving this."