In April the group re-lodged a development application to extend and refurbish existing buildings, construct new buildings and a rail link on its eight-hectare site off Dowling Street at Newstead. 

But plans were put on hold after a group of residents voiced concerns about how the upgrade would affect the city and the residents in the area.

In a meeting with Toll in late May, the residents raised issues about an increase in heavy-vehicle traffic on roads around the site, and a lack of restriction around operating hours – leading to high levels of noise at night. 

In its original development application Toll said there would be no change to traffic levels around the site. 

City of Launceston general manager Robert Dobrzynski confirmed Toll had sought an extension to the assessment of its application until August this year “to allow it to attempt to address the concerns of representors”.

"Clearly there are concerns in terms of the impact that increased activities on the Toll site may have,” Mr Dobrzynski said.

“We're also respectful of the fact that Toll has been a significant contributor to the city's economy and is an important part of the freight network in Northern Tasmania.

"We're hopeful that this extension of time will enable Toll to take into account in their development proposal some of the specific concerns that have been raised by representors."

A Toll spokeswoman said the company remained committed to the development of “an advanced transport and logistics site in Launceston”.

She said Toll would work closely with stakeholders to make a positive development and safety the priorities.

"We look forward to continuing to engage throughout the development application process to minimise any impact to residents, traffic and pedestrians,” she said.