The plan has been developed with a grant of $40 million from the Provincial Growth Fund, as announced by the minister Shane Jones on 15 November 2018.

Traffic increased with the opening of the line to Napier via Woodville in 1891, and the station was moved 30 chains (603m) south in March 1891.

Construction of the Milson deviation to shift the line and station northwest and away from the centre of Palmerston North started in May 1926,[6] but was delayed by the depression and Second World War, and objections from the local business quarter; when work was suspended in April 1929, the reasons given by Prime Minister, Sir Joseph Ward, included the distance of the new station from the town centre.

Work finally resumed in 1957 under Minister John McAlpine,[9] the first stage to Milson from the north-east was opened on 22 April 1954.

[9] On 21 October 1963, the new station and yards were opened, and all rail traffic removed from the main street and square of Palmerston North.