QUEENSLAND Rail's planned service depot at Wulkuraka has been put on hold as Transport Minister Scott Emerson continues to review projects.
Residents were made aware of the decision by Ipswich West MP Sean Choat late this week, with a renewed consultation process to take place.
The Ada St depot, currently awaiting approval by the Ipswich City Council, is to be home to QR's new fleet of City Trains and employ 200 staff.
Mr Choat said the delay was a relief for residents, who felt left out of the loop during the first round of consultation.
"The residents don't know what to expect. The more community consultation I am happy about," he said.
A spokesman for Mr Emerson said the Wulkuraka site, along with other major projects, were under review.
"As we've said previously, given the poor state of the Queensland budget and the spiralling debt, we are reviewing all major projects to eliminate waste and ensure Queensland taxpayers are receiving value for money," the spokesman said.
"This project would require a proper community consultation process before proceeding."
Mr Choat said a group of Wulkuraka residents were worried about what issues the project would raise.
"What they have there is a lovely quiet area over there, and not knowing what it will be was a concern for them."
He said the residents would now get a good chance to put their own concerns forward.
The site also includes parts of native koala habitat, according to Environment and Heritage Protection Department executive director nature conservation services Geoff Clare.
He said the site was within the Koala State Planning Regulatory Provision.
"The majority of the site is mapped as low value rehabilitation with only a portion mapped as medium value bushland," he said.
"Queensland Rail will be required to offset if the development removes trees identified as medium value."