UGL Regional Linx has announced Orange will be the base of its operations after last Friday winning a 10-year contract to maintain the tracks, stations and railway properties across NSW.

A spokesman said the company was looking for office space in Orange for the Network Control Centre ahead of it starting the contract next January.

"We're definitely looking at the DPI building. It is one of the sites we are looking at," he said.

"This will be the operational centre for the [NSW country rail] network, in Orange."

The spokesman said they would have about 60-70 staff based in Orange.

"It's mainly professional staff and some field staff."

He said they would be seeking staff locally for some of those roles.

"Administrations, managerial and engineering jobs," he said.

The spokesman said they would not need all of the old DPI building.

It housed several hundred government workers until they moved into the new $75 million Ian Armstrong building in Prince Street late last year. There have been community concerns about how such a large building could be re-used.

The spokesman said while UGL's head office was in North Sydney, the newly-formed UGL Regional Linx arm would be based in Orange. "The CEO will be moving to Orange," he said.

The spokesman said other field staff would be based at traditional rail depots across NSW to perform maintenance and upgrading work on the rail system.

UGL Regional Linx is taking over the contract from John Holland Rail Country Regional Network which is based in Parramatta.

"It's a move to the regions for the base," the UGL Regional Linx spokesman said.

He said the company might need to use some railway land near Orange station but was not seeking warehouse space for its operations.

The spokesman said it was not clear when the company would decide on a site in Orange for the Network Control Centre.

He said they would be looking after about 2400 kilometres of operational railway lines in NSW and about 3200 kilometres on non-operational lines.

Orange mayor Reg Kidd said it was likely the DPI building would become home to more than one company in the future.

"It could be multi-use, it could a be a combination," he said.

"That is one exciting possible use for it."

Cr Kidd told Tuesday night's council meeting UGL had been in discussion with council for "quite a while" before winning the contract.

"Our staff have taken them around and shown them Orange education, housing, shopping and a whole range of things [including] industrial sheds they'd be looking at.

"I think it's a big coup for Orange. I think it's the biggest coup for Orange since we got the DPI back 20-30 years ago."

Cr Kidd said there would be multiple job opportunities created.

"What's more exciting for Orange and younger people in Orange is this company is very, very pro-traineeships and apprenticeships, very, very pro-employment opportunities and career opportunities for Indigenous people and thirdly super-strong on employment opportunities and career opportunities for people with disabilities," he said.

The area around the old DPI building has also seen three car dealerships leave the area for new sites on the eastern end of the city, creating an empty look to the CBD entrance on Bathurst Road around the Five Ways precinct.

However, a major hotel/motel complex has been given planning approval for a site between Endsleigh Avenue and the railway line near the rail footbridge.

Council is considering creating an accommodation-based inner city living sector, known as the Eastside Precinct in the area.

Minister for Regional Transport Paul Toole announced UGL had won the rail maintenance contract last Friday.

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