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The Minister travelled with invited guests on the first passenger train on the new line from Kent Station in Cork to Midleton, opening the new stations at Carrigtwohill and Midleton itself.
Work on the new line was completed following a €75m investment in the infrastructure under the Government's Transport 21 programme, part of the National Development Plan 2007-2013.
Physical work on the route commenced in February 2008, and was completed last month.
A total of 21 trains each way will operate daily between Cork and Midleton, with services running every 30 minutes at peak times, and every hour at off-peak times, Monday to Friday.
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Speaking at the opening, Minister Dempsey said: "The reopening of the Cork to Midleton rail link is fantastic news for all those living and working in the region.
"Despite the current very difficult economic conditions this Government is committed to investing in world-class public transport alternatives for commuters," he said.
"This new station at Midleton, along with the new station at Carrigtwohill, will allow thousands of people living locally to leave their cars at home and instead enjoy a stress free rail journey."
CIÉ and Iarnród Éireann Chairman Dr John Lynch said: "The development of the Midleton line is an integral part of a framework for land use, transportation, social and environmental policies in the Cork region which sees Cork take the lead in sustainable planning in this country.
"This will deliver a system which will benefit generations to come in Cork and in the Munster region.
"There has been tremendous public support for this major investment, and we are delighted to commence the service, and look forward to welcoming our new customers to Iarnród Éireann's services," he added.
(PR/JM)
