"Rail, as we said in Budget 2019, is back on track" announced Deputy Prime Minister Winston Peters after what the government has described as years of decline and neglect.
He was joined by Finance Minister Grant Robertson and four other Ministers at the Wellington's railway station.
"The more freight we put on rail the better. It has a benefit for both our emissions profile and also for the way that New Zelander's feel safe when they're driving," says Robertson.
The $1bill announced for rail in this years Well Being Budget will be broken down into four parts. $300mil will go towards the network - track assets, bridges, culverts and electronic signalling. Another $300 for rolling stock.
Transport Minister, Phil Twyford says for too long, rail has been in a state of managed decline.
"Investment in the quality of the track is incredibly important for the reliability and reducing the journey time that will allow rail to compete in the freight business."
The Regional Development Minister sang the American gospel song "This train is bound for glory" to express his excitement today. On top of the budget's $300 million for regional rail, the Provincial Growth Fund has already given $183 million to rail to create growth in the regions.
Jones said today "I look forward to bringing a proposal forward with KiwiRail to the Ministers that comprise the regional growth team so that we turn around the fortunes of places like Dunedin, grow the capacity of the Hutt and encourage that part of our mission which really is to invest in vocational training, apprentices and stop our reliance, as is the case with other industrial sectors, on too much migrant labour."
$35 million will go towards enabling KiwiRail to begin the process of replacing the three Cook Strait Interislander Ferry's.
Kiwirail CE, Greg Millar says the new ships will have far bigger rail capacity on the rail decks.
"They're moving from about 150 metres in length to about 220 metres. So more economic in terms of the way that they run, better hull design and two big vessels rather than three small ones."
A plan to integrate all transport investments including shipping is also on the cards.
"You're going to see a balanced investment, in both maritime and rail and on road," says Peters.
Robertson concluded saying "there was a time when rail was right at the heart of what we did. Some decision's were made by previous governments to sell it off, then buy it back. Now it's our time to build it up and take the place it should."
A Rail Plan will be released over the coming weeks and will outline the Government's strategic vision and give a 10-year programme of indicative investments and benefits.