Works to remove the Carriage Café from the Esplanade Reserve and restore the area to parkland commenced on Monday.
The works also include the demolition of the surrounding pergola, deck and concrete slab, with the two Norfolk Island Pines within the site to be retained.
The café ceased trading in March 2022, and the timber railway carriage has been sitting vacant and fenced off for several years, attracting concerns for public health and safety.
While it was an iconic landmark in Esplanade Park for many years, the carriage structure has been neglected and repeatedly vandalised.
Lengthy negotiations with the prior tenant, together with related legal proceedings, delayed the City's ability to remove the privately owned carriage until the necessary approvals were secured.
The prominent location on the eastern side of the park, will be returned to open green space, while the City considers potential future uses of the land.
The works are expected to take two weeks. The City thanks the community for their patience over the past few years and over the next few weeks.