The proposed museum site is located at old Taiwan Railway Department Headquarter.  The building were changed to become Railway Bureau after retrocession and the building has been designated as class III historical structure by Ministry of Interior on January 1992.
Taiwan Railway Administration based on policy of preserve, protect and revitalize the cultural property, and restoration of the 100 year old railway cultural and related properties, decided to establish a historical railroad museum and enhance the dissemination of the cultural information. Also to effectively use of the land resource, other commercial development on the portion of the site has been considered and thus further enhances the city development program.