Money is being spent of the East Coast Main Trunk rail line, connecting The Bay of Plenty and Waikato, to ensure it continues meeting increasing demand for additional freight services.

Kiwirail is going to spend $500,000 extending the Tamihana passing loop in the Waikato from 900m to 2.2km.

It will mean longer trains will be able to pass each other.

Passing loops allow trains heading in opposite directions to pass each other on a single track railway line such as the ECMT. The more passing loops there are along a rail line the more trains can run along it.

The project is the final element in a series of improvements to rail infrastructure over the past five years to deliver additional capacity.

The passing loop is at the halfway point between Tauranga and Hamilton and at the junction of the Kinleith branch.

KiwiRail's infrastructure and engineering northern regional manager Stephen Collett says it's one of two new passing loops along the route.

'Wider improvements across our business in the past 12 months, particularly the expansion of our rolling stock fleet, give us the ability to service new business in these areas with existing infrastructure.

'We will continue to keep in touch with existing and potential customers in those areas, and if business demand is strong enough we would look at infrastructure investment then.”

The works are being funded by the $13 million joint officials group fund allocated to the region by government in 2006.