In Hawke's Bay, it is hoped the Government will help reopen the line as far as Wairoa.
A Napier Port-run rail freight service was supposed to be operational last year but the cost for KiwiRail to ready the track was too high and the service postponed.
This was despite strong growth in log volumes to Napier Port and that section of track not suffering the washouts as nearer to Gisborne.
Hawke's Bay Regional Council Transport Committee chairman, Alan Dick said there were talks between Government and KiwiRail.
"That is backed up of course by the existing agreement with Napier Port and KiwiRail, which in turn is backed up by the underwriting agreement from Hawke's Bay Regional Council.
The choice of Gisborne for the fund launch is likely tied to the government's billion-tree planting pledge, which will further increase the appeal of rail.
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