The government's decision to invest $750 million into the national rail network over the next three years will help the Port of Tauranga develop as New Zealand's "hub port", says Port of Tauranga CEO Mark Cairns.

Port of Tauranga CEO Mark Cairns.

The aim of the funding is to support KiwiRail's Turnaround Plan, which is designed to see freight rail business become sustainable, within a decade, by getting it to a point where it funds its costs solely from customer revenue.
Mark says 50 per cent of all goods that enter and exit the Port of Tauranga are transported by freight rail.
"This investment is important if we are to become New Zealand's future hub port," says Mark.
He says only 11 per cent of all goods that enter and exit the Port of Auckland are transported by freight rail.
Larger container ships entering the Port of Tauranga have the capacity to carry 2000 containers.
Mark says it would take the equivalent of 2000 truck movements to transport those containers, compared to only 20 movements via freight rail.
He believes the government funding will be used to upgrade the region's rail network, purchase new locomotives and increase train capacity, although KiwiRail has not announced how funding will be allocated around New Zealand.
"I would expect them to invest where there is the business case to invest," says Mark.
"The Tauranga to Auckland line is one of the busiest in the country. It would make sense to make significant investments in this line."