NZ Politics

Companies sending goods up and down the country's railways could begin to favour road transport as KiwiRail manages declining assets, an expert says.

KiwiRail is focusing on upgrades and electrification in Auckland, Hamilton and Tauranga - the so-called "golden triangle" - and other main freight lines while it manages older assets elsewhere.

The company said it was the only option that would allow it to meet budget cuts of $200 million over the next three years.