According an NZPA story, the export timber will be carried on the existing daily rail service that runs to and from the nearby Karioi Pulp Mill, also owned by WPI.

KiwiRail's commercial general manager Aaron Temperton said the new business was made possible by comparatively modest investment in infrastructure, he said.

Ontrack, the infrastructure arm of KiwiRail, has also leased land to the mill for loading space. WPI has sought funding from the New Zealand Transport Agency to assist with financing the initiative.

KiwiRail is also optimistic a loss-making rail line it runs one train a week on, between Napier and Gisborne, can be improved at minimum cost to carry higher containers and attract new business.

KiwiRail will soon run a trial on the line to identify how much work is needed to be able to put high cube containers on the line. They are 2.9m high. Work on the network in the lower North Island in the last year or so has removed blockages to such containers.

The new business KiwiRail is eyeing includes the proposed Hikurangi Forest Farms veneer and plywood mill, which has resource consents, and could be operating by late 2011, as well as other forestry industry clients.

Source: www.stuff.co.nz/