An extra $110 million is going to the upkeep of Northland's rail line from the Provincial Growth Fund.
Almost $95 million had already gone to "undertake long overdue and critical maintenance on the rail line to Whangārei", State Owned Enterprise Minister Winston Peters said, "and today we are building on our promise to return rail to its rightful place in Northland".
"We are investing a further $69.7 million to lower the tracks through tunnels on the Northland Line between Swanson and Whangārei, expanding rail further into Northland by reopening the rail line from Kauri and building a container terminal at Otiria," he said.
Of the alottment, $40 million will go to buying land along the line between Northport and Marsden Point.
Mr Peters said it would mean more freight would go onto rail and it would help reduce road congestion, road maintenance costs and lower carbon emissions.
"It will also mean that modern shipping containers can be carried through the tunnels on the North Auckland Line."
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