The government says its funding of freight rail has been shunted to the side for too long and will now bankroll it from the same pot used for roads.
This morning's announcement - part of the long-term "New Zealand Rail Plan" - will see rail integrated into the National Land Transport Fund.
Minister of Transport Michael Woods told Corin Dann the move will cater for long-term investment decisions, which is needed given large parts of the national rail network have been in decline for decades.
