Newell and Wright Transport has spent two months ‘working day and night’ relaying track and building a platform at Tinsley Marshalling Yard - once home to more than 200 locomotives. It has been disused since the early 1980s.
The firm welcomed its first train this week, watched by rail enthusiasts and train spotters excited to see the site come back to life.
Bosses said the major investment was aimed at cutting truck usage and emissions and strengthen ties with shipping lines and distribution centres.
Newell and Wright Transport, based on Sheffield Road, Tinsley, was established by Frank Newell and Paul Wright in 1974. Today it turns over £50m-a-year and employs 400.
Frank Newell said the new project had created 20 jobs. It was one of three phases planned set to cost £14m.
He added: “This is just the start of a huge investment into rail freight, we plan to start phase two of the development, increasing capacity and job opportunities in the area.
“The government have asked businesses to reduce emissions, reduce traffic and make changes to support environmental initiatives and that’s exactly what we have done.”
The first train was from Maersk. Containers were unloaded and reloaded before it set off back to Felixstowe.
Commercial director Paul Barker said: “This development will strengthen our relationship with all major shipping lines and large distribution centres in the region, supporting ever increasing supply chains.”
Operations director Stephen Newell said “This is another step towards cutting our carbon footprint.”