Nearly $65 million has been allocated in today's Budget for transport projects, with most of the new money going into the state-owned rail company.
The Government has committed an additional $248.9 million over the next four years for transport spending. This brought the total spend on transport in the 2015/16 year to $4.27 billion, of which $3 billion came from the National Land Transport Fund.
Transport Minister Simon Bridges said Kiwirail would receive $209.8 million from the Future Investment Fund, which holds the money generated by the partial sales of three state-owned energy companies.
The fund was initially created with a promise to build schools, hospitals and roads.
Asked why the asset sales cash was being used for railway projects, Finance Minister Bill English said the funding was "appropriate".
A further $190 million would be put into Kiwirail in next year's budget, Mr Bridges said.
"This will funding allow it to deliver services and maintain the national network to a safe and reliable standard."
Mr Bridges said Government was committed to supporting the company to meet its targets over the next two years, but Kiwirail had to continue to become more efficient and productive to reduce its ongoing costs to the Crown.
A further $6.5 million would help the company complete signals upgrades on the Wellington Metro Rail network over the next three years.
Further transport spending would go into the SuperGold Card scheme, which subsidises off-peak public transport for over-65s.
The scheme has been given $10.2 million in additional funding for the next financial year, bringing total funding to $28.1 million.
"Considering that the number of eligible card holders has grown by over 150,000 since the scheme was introduced in 2008, and they made 11 million trips last year alone, I'm pleased we can continue to deliver this service," Mr Bridges said.
Another $6.5 million has been allocated to the Transport Accident Investigation Commission, to help the organisation with its increasing workload.
The Metservice weather service has been given $15.9 million to help it replace its meteorological forecasting system and establish a new disaster recovery backup facility.
The new funding would also allow it to give free forecasting services for the recreational aviation sector.
As previously announced, the profits from asset sales would also be used to improve regional highways ($97 million) and urban cycleways ($40 million).