Fabrication of the ship loader is underway, with contractor COVA-Haywards well-advanced on detailed design work at Somerset.
The shiploader structure and wharf conveyor units will be built at Haywards' Western Junction site in Northern Tasmania, while COVA-Haywards has also sub-contracted some of the fabrication work to a company based on Tasmania's northwest coast.
The design and construction of the shiploader is expected to create 140 jobs.
The existing shiploader will be maintained by TasRail until the replacement facility is commissioned.
TasRail is also working on site preparation works at the port.
Tasmania infrastructure and transport minister Michael Ferguson said the project was on track to be completed by mid-2023.
He said the ship loader gave both resilience and long-term confidence to the West Coast mining sector by employing local people.