Network Rail (NR) is to build a road haulage distribution centre on the site of a former Peugeot car plant, creating 100 jobs.
The £25 million centre at Ryton in the West Midlands will be a "significant hub" for NR's national delivery service.
Martin Elwood of NR said: "Network Rail's first preference is to transport goods by rail. This is not always the right solution, so we have an extensive road fleet to transport goods and equipment to our work sites and depots.
"By bringing the logistics for this together at Ryton, we can offer a more effective and efficient service for Network Rail. This will mean reduced costs and faster turnaround times when we do work on the railway."
The former Peugeot plant, which was closed in 2006, originally produced aircraft engines during the Second World War.
© 2012 Press Association