The money is coming out of the Government's new Provincial Growth Fund and the decision was announced by Regional Economic Development Minister and Associate Transport Minister Shane Jones in Gisborne on Friday.
The wall of wood is expected to reach peak harvest by 2032 and this decision will take 5714 trucks a year off the State Highway from Wairoa to Napier, which is a challenging road to drive even without the logging trucks.
The aim is for the first log train to run on the line by the end of the year and with that work has already begun clearing the tracks.
It is quite remarkable considering the line has been dormant for the past six months.
Like any initiative in this province, if it works and is economical then it can't be a bad thing.
However, it must not become a drain on tax and ratepayers.
Let's hope for the best.