In the broader context of contemporary urbanization, the conflict between preserving industrial heritage and urban development has emerged as a significant challenge to urban growth. Rapid urbanization and significant industrial transformation have brought traditional industrial infrastructure to a critical historical juncture. The systematic abandonment and demolition of numerous industrial heritage sites are causing an unparalleled loss of historical depth and cultural identity in cities, resulting in alarming trends of spatial homogenization and decontextualization. This study focuses on the Nanjing–Wuhu (Ningwu) Railway, particularly examining the challenges of industrial heritage conservation caused by the relocation of the section from Guxiong to Cangbomen during the railway’s expansion and renovation project. It aims to investigate the relationship between industrial heritage and urban memory within the context of modernization, as well as to identify viable pathways for its preservation, thereby offering theoretical insights and practical references for future railway heritage protection initiatives.