A development plan for Darlington Railway Centre and Museum envisages the site being enhanced over five-years to eventually attract 80,000 visitors a year.
A revised bid for funding is to be made to the Heritage Lottery Fund and Darlington Borough Council chiefs are confident the site has an exciting future.
Leisure services cabinet member, Councillor Dorothy Long, said: "We shouldn't under-estimate the importance of the railway centre and, of course, the 177-year history of railway and engineering heritage we have in our town."
More car and coach parking spaces are also planned.
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