Restoring the rail link to Gisborne is economically, environmentally, and socially justified, according to a new report.
KiwiRail train on Napier to Wairoa line. Photo: RNZ screenshot
The report commissioned by the development agency Tairawhiti Trust was authored by economic consultancy BERL and funded by the Provincial Growth Fund (PGF).
It estimates it would cost between $30 million and $36m over 10 years to restore the line and make it more resilient.
"Reinstatement of the Tūranga ki Wairoa rail line is feasible from an engineering perspective, and there is sufficient freight for five trains per week," Ganesh Nana, BERL's research director, said.
There was also potential for tourist train services.
The Napier to Gisborne line was mothballed by KiwiRail in 2012 after a storm caused slips and washouts. It was partially restored as far as Wairoa and re-opened in June after a $6.2m grant from the PGF.
Nana said the Wairoa to Gisborne section of the line would need one-off spending of between $20m and $23m to become operational, with another $10m to $13m to improve its resilience to bad weather, and upgrade bridges and tunnels.
The benefits of reinstatement are seen as promoting social and cultural wellbeing, reducing heavy truck use of the state highway, reduce accidents, road maintenance and carbon emissions.
Freight likely to be carried on the line would be logs, fruit, meat, and processed timber products, with benefits for local exporters from greater convenience and connection to the national rail network.
Nana said more detailed commercial feasibility studies would be needed but the case for reinstating the line was proven and doing nothing would hold back the region.
"A shift to higher-value land uses with increased productivity and processing is already under way. This shift could be delayed or deferred, or the necessary investment deterred, given the ongoing prospect of limited transport options facing potential business operators or investors."