A safer level crossing, increased car parking and improved pedestrian and bike access are some of the top priorities identified by the Lindum Station Precinct Study.
Community feedback from the study's first stage will be analysed to guide how the project will take shape.
Federal Minister for Population, Cities and Urban Infrastructure Alan Tudge said local knowledge was crucial to ensure the best outcome was achieved for the Lindum Rail Crossing upgrade.
"We know this intersection is dangerous and the Morrison Government has prioritised this study so we can find solutions to fix it," Mr Tudge said.
"We will be looking at a range of options for the level crossing, including at-grade solutions or alternative locations."
Queensland Minister for Transport and Main Roads Mark Bailey said the consultation process included a digital approach with a survey and ideas wall, as well as face-to-face engagement with community and stakeholders.
"Lindum Station and its surrounds are a crucial part of the local community. That's why it's vital we prioritise the community as part of the study," Mr Bailey said.
"The importance of this study has been reflected in the community's feedback with nearly 7000 website views, almost 300 surveys completed and 180 ideas shared on the interactive wall.
"This study will allow us to consider the broader station area and identify opportunities for the precinct. If we get this right, it will serve as a catalyst for new local economic activity, which means more local jobs.
Both the Member for Lytton Joan Pease and I want to plan for a new community transport hub that safely caters for commuters, school children, business, bike riding and walking connections as well as local motor vehicle traffic."
Federal Member for Bonner Ross Vasta said community safety was his top priority, with the level crossing and five-ways intersection a nightmare for motorists during peak commuter times.
"Options to be explored to improve safety for motorists and pedestrians include grade separation, upgrading the existing level crossing and relocating the level crossing," Mr Vasta said.
"The project will also consider station and parking upgrades.
"These outcomes will inform all levels of government in relation to the next steps for the project, including progressing the project towards a business case."
State Member for Lytton Joan Pease said the community wanted a long term solution for better pedestrian safety, congestion and parking.
"During the initial consultation, our community suggested things like changes to the road network around the station, more car parking and better facilities for pedestrians in the area," Ms Pease said.
"That feedback is now being used to inform the development of a technical study which will determine the best way to deliver this improvements with as little disruption to the local village as possible."
The Lindum Station Precinct Study is jointly funded by the Australian and Queensland Government's both contributing $400,000.
The Australian Government has also committed $85 million to the construction of an upgrade to the Lindum Rail Crossing.
