WORK to double the size of Biloela's off-street car park in Callide St will begin next year.

The $100,000 project will see the 33 car spaces increased to 100, providing extra parking for staff working in the CBD. This will free up additional parking spaces in front of businesses in Callide, Kariboe and Grevillea Streets - a long term bugbear of local business operators.

The way was cleared for the project to proceed when Banana Shire Council officially took up a 50-year lease on the disused railway corridor.

Queensland Transport manager of rail corridor management Craig England attended the official hand-over ceremony.

The parcel of land stretches from the Dawson Highway north to where the old line crossed over Quarrie Road (near the wheat depot).

Council chief executive Ray Geraghty said negotiations to take over the land had been ongoing for several years, but the process really kicked along last year when the old rail line was pulled up and the land was handed from Queensland Rail to Queensland Transport.

"Now that Council has the land, there are several key projects that we can move forward with," Mr Geraghty said.

This includes the relocation of the SES headquarters into the old Biloela Railway Station house and the $1.4 million upgrade of stormwater drainage in the CBD.

Mr Geraghty said the relocation of the SES headquarters from their shed adjacent to the fire station would be carried out in stages.

"We will be seeking funding to upgrade the old station building and long term we will either relocate their current shed or build a new shed on the new site."