Rail purchase

With the dramatic rise in fuel costs and the likelyhood of peak oil being either on us or very near, it's looking like the Government's purchase of NZ Rail is a smart move. As fuel costs rise rail will become a more attractive option for business to move large quantities or heavy loads long distances.

We may be on the verge of seeing a change back to the door->road-Rail->road->door freight movement of the past instead of the Door->Road->Door movement which has been common since the mid to late 80s.

If so, the both the government and the company that owned the rail have made smart moves. The Government invests in the long distance infrastructure which has been woefully run down, and the former owner has ensured they get an income stream from the road business they kept hold of.

Personally I will welcome seeing fewer trucks on the road. This may help reduce the maintenance costs of the roading network as well.