KiwiRail has been criticised for making the permit process for working near railway lines too costly following a worker's death at a level crossing.
An investigation into a fatal crash at a crossing in Marton in 2021 found the contractors, who were painting road markings, hadn't applied to be there because the permit was too expensive.
Charging for a permit was also, in the eyes of the Transport Accident Investigation Commission (TAIC), against the law.
TAIC called the minimum $975 charge required to get a permit to work alongside the railway lines "prohibitive", and found the realities of organising permits too cumbersome for companies to religiously follow.
The incident on May 13, 2021 occurred when two contractors were painting road markings at the level crossing, using equipment fitted to the flat bed of a ute.
The driver unexpectedly drove onto the rails while the paint operator was still painting lines.
The paint operator noticed a train approaching, about 260m away, and despite their shouted warnings the driver did not move the ute or leave the vehicle.
Emergency braking did not stop the train in time, and it was travelling at 72kph when it struck and destroyed the truck, and the driver was killed.
Photos from the time of the accident show white paint sprayed across the tracks and nearby fences.
The TAIC investigation found KiwiRail was unaware the contractors were on-site because the contractors had not applied to KiwiRail for a permit to enter the rail corridor.
Had they done so, it found, KiwiRail almost certainly would have organised protection, and stopped trains passing during that time.
However, TAIC found KiwiRail's permit requirements were so costly, and the process so demanding, that contractors chose non-compliance.
On this occasion, the contractor could have had to organise and pay for permits for multiple locations, at a cost of $975 each a minimum.
TAIC and KiwiRail disagreed on whether the charging of a fee for the permit was even legal.
The Railways Act says KiwiRail "may not charge any amount for considering or deciding on a permission sought".
TAIC recommended KiwiRail check their requirements were affordable when measured against the value of the work being done, and that their fees complied with the Railways Act.
It concluded that contractors must tell KiwiRail when they would be on-site in future, and expect rail traffic at any time.
KiwiRail said in a statement it would be making changes, but did not explain what those would be.
Group general manager for zero harm, Alastair Cumming, said it was a tragic incident and KiwiRail's thoughts were with the family and colleagues of the contractor.
"In line with TAIC's recommendation, we have looked at our Permit to Enter system," his statement said.
"We are working with Road Controlling Authorities and Waka Kotahi to implement change to the Code of Practice for Temporary Traffic Management to include best practice guidance for road and roadside workers working near the rail corridor."