While not divulging the project costs, a BP spokesperson said it was "significant".
Wanganui firm W & W Construction is the lead contractor with local sub-contractors involved.
A few hundred metres along London St, the site has been cleared for a Z service station. Z (formerly Shell) confirmed in August that it was eyeing development on the intersection of London and Glasgow streets.
A spokesperson said although it had resource consents for the site, the company was "still exploring other alternatives" and did not have confirmed plans. A number of buildings on the site have been demolished and a start appears imminent.
The consent allows for two fuel pumping bays, an LPG "swap and go" station along with a small retail area within the building. W & W Construction has been in the thick of many of the major contracts. As well as being involved in the BP station and Victoria retail centre, the firm picked up a contract worth more than $12 million earlier this year as part of a $22 million upgrade of the Whanganui Prison at Kaitoke. That contract was expected to run for about 18 months.
The other major construction is happening on the Open Country Dairy site on Heads Road.
Open Country plans to double output from its milk powder plant with a new facility that would replicate the existing tower next to Affco's Imlay works.
A second spray dryer will start production next August, supplied by dairy farms through the Manawatu, Wanganui and Taranaki. The existing dryer can produce 30,000 tonnes of milk powder from 220 million litres of raw milk.
The Chronicle has already reported that local businesses and suppliers were gearing up for expansion at the plant. Dairy Fresh, which provides the tankers collecting the milk, has been advertising for more staff and more milk powder, which means warehouse capacity nearby will be growing as well.
Ali Arc Logistics is building a new 400 sq m warehouse next to its existing storage facility in Heads Rd. It will also use extra floor space available in the former Molten Metals building in Gilberd St, currently the temporary home of the Fire Service.
And the development of Caroline's Boatshed Bar and Eatery continues at the former Aramoho Hotel on Somme Parade, a job that involves a major makeover of the hotel.