The appointment of former National Prime Minister Jim Bolger to chair the new state-owned enterprise (SOE) - speculated to be named Railcorp - is a typically adroit political manoeuvre by Finance Minister Michael Cullen.

Not only does Cullen get onboard (excuse the pun) the experienced SOE chairman who oversaw the emergence of Kiwibank into a fully fledged, Government-owned retail bank, but he also defuses (again) National's ability to undermine the Government's renationalisation of New Zealand's railways.

Under Bolger's leadership, National privatised the railways in the first place to a consortium led by Sir Michael Fay and David Richwhite's investment bank and Wisconsin Railway in 1993.

But it was hardly an unmitigated success. By 2002, a lobby group of users, including Solid Energy, Fonterra, Carter Holt Harvey and BHP Steel, was pushing the Government to examine the failure of then Tranz Rail owners to maintain national rail track to a sufficient level and its fees for rail freight business.

Not long after, it became an obvious financial basket case.

Bolger's appointment will be confirmed at a special meeting on platform nine at Wellington station on Tuesday.

One of the key questions for journalists will no doubt be: "Why did you privatise the former Railways Corporation in the first place?" Bolger's political acumen will enable him to defray any sallies with ease, but National will be hard-pressed to make any subsequent political capital as MPs would, in effect, be criticising one of their own.

Other directors tipped to be among the new SOE appointees include Ross Wilson and Brian Corban. Wilson, a former boss of the Council of Trade Unions, now chairs the Accident Compensation Corporation and Corban chairs Government-owned power generator Genesis Energy and Radio New Zealand.

It's understood the Government hoped to persuade former Meridian Energy CEO Keith Turner to be CEO when Toll Holdings' four senior management secondees depart in February. But sources suggest Turner seems determined to focus on governance roles.

Cabinet ministers, officials and businesspeople led by Helen Clark are expected to turn up at 9.30am on Tuesday as the membership of the new SOE board is unveiled, with the new livery for trains and ferries (they were repainted when Tranz Rail and Toll NZ took respective ownership of the assets).

Cullen has been shepherding the re-nationalisation of the former state-owned railway business back into Government ownership over a five-year period starting in July 2003 when he signed a heads of agreement with Toll Holdings to acquire the national rail track.