KiwiRail has been given two years sort out its finances or faces being shut down by Treasury, as the value of its network continues to decrease.
The company's chief executive Peter Reidy says it's not all doom and gloom and that rail continues to be a valuable commodity for the country.
The value needs to be measured not just in direct economic terms, but by what the cost would be if there was no rail network, he says.
"If you look at the true value of rail which is the cost to the country if rail wasn't here - imagine 1.4 million trucks on the road…I don't think New Zealanders would want another 27,000 trucks on their roads per week…that's not taken into consideration when we look at the numbers," Mr Reidy said on the Paul Henry programme this morning.
He said despite Treasury's reluctance to invest, the Government remains optimistic.
"The Government really committed to two-year funding and they announced that they would commit to another two-years funding for $400 million – so they've very, very positive," says Mr Reidy.
Companies such as Fonterra, Mainfreight and the Port of Tauranga also rely on the company to do business, he said.
Watch the video to see the full interview with Mr Reidy.
