Work is well under way to create a new museum at Bristol's Harbourside.

The new £25-million Museum of Bristol is being built in the landmark 1950s transit sheds that were home to the former Industrial Museum, near Prince Street Bridge.

Bristol City Council, which is running the project, say it is scheduled to open in 2011 and will bring the city's history to life.

At the moment the structure is covered with scaffolding as building work continues.

The builders are currently putting in a steel frame on the second floor which will create the temporary gallery. This work will be done over a period of time as the frames are put in place in sections.

Casting works of the new passenger lift and goods lift for the centre of the building are being undertaken, and cladding is being put on the north elevation which overlooks the harbour.

The firm in charge of the building work expects the first of the refurbished sliding doors to be completed soon. The museum, where entry will be free, will be dedicated to the history of Bristol and the people who have lived and worked here.

It has been made possible with a £11.3m Heritage Lottery Fund grant, and support from Bristol City Council, Renaissance South West and the Museums, Libraries and Archives Council.

The whole site – the sheds and their quayside – is one of the last remaining complete 20th century docksides in the UK.

The Museum of Bristol is being hailed as an essential part of the regeneration of Bristol's Harbourside, which it is hoped will attract local, national and international visitors.

Curators are currently deciding what displays will fill the museum, including the new glass rooftop gallery, which is being added to the original sheds to create an additional exhibition space.

What is known is that it will be full of old favourites alongside new exhibits, and there will be personal memories and stories of people who have lived and worked in Bristol. The museum's working exhibits – the historic boats, trains and cranes – will play an important role and will continue to operate.