A contract for the construction of the North Quay rail loop and stage one of the new rail terminal at North Quay is expected to be awarded in August.

The new rail infrastructure, which is needed before the Leighton marshalling yards can be redeveloped, is an important part of the plan to increase the proportion of container freight carried by rail to and from Fremantle Port's Inner Harbour.

The rail loop will require a bridge across Tydeman Road, close to the existing rail bridge and will pass behind the Railway Hotel. Development of the rail terminal will require the southern portion of Port Beach Road to be realigned.