"It's driven by politics and the wider consideration to get stuff off the roads. All the transport projections I have seen say there will be more trucks on the road in 2020 than there are now. It's just their share will have fallen because of an increase in rail."
Mr Simpson said the rail purchase was unlikely to have much effect on his members. Other than bulk freight, rail suffered from not being able to provide a door-to-door service. It would take a lot of "tweaking" to make a difference.
A more attractive option would be reinstating an efficient coastal shipping service, which was previously well used by association members in the South.
Cook Strait was an expensive piece of water to shift freight across and it was doubtful whether government ownership of the ferry service would reduce costs, he said.
The announcement on buying the rail and ferry assets of Toll New Zealand was made unexpectedly by Prime Minister Helen Clark and Finance Minister Michael Cullen.
Otago Chamber of Commerce chief executive John Christie believed some of his members would consider using rail but there needed to be a compelling reason for them to do so.
"It's not only about sustainability. It is about practicality".
A strategic transport network is a vital component to growing the economy. A rail corridor must be well defined, well built and maintained. But it is an important part of our transport network.
"We are fortunate in Otago to have a good port facility and good air links. An efficient rail network would add the extra dimension."
Road Transport Forum chief executive Tony Friedlander said it was too early to comment on the impact of the announcement but was pleased Toll's rail and road operations would now be separate.
"The Government's decision to buy back Toll's rail and ferry business offers an opportunity for the road transport industry to work with the new operators of the rail network to handle the freight task, which is expected to double by 2020," he said.
"But we need more details about the agreement and how the business will be run in future before making any more comment," he said.
National Party leader John Key said the decision to buy back the rail rolling stock did not make sense at a time when householders were struggling to pay the weekly bills.
"National will be stuck with the railways because nobody else will be willing to stump up with the sort of money Labour has just paid.
Our view would have to be that we would be making the best of a bad situation.
The rolling stock would remain state-owned for at least the first term of a National-led government, which is consistent with our SOE policy."
Labour had paid over the odds in what was a backward-looking investment that would do nothing to improve New Zealand's productivity, he said.
Richard Prebble, a former Labour cabinet minister before moving on to lead the Act New Zealand Party, was a key player in the decision to sell off rail.
He said the purchase would be far more expensive than people realised.
"It's going to be the most expensive purchase that the taxpayer's ever had to fund. We've got 100 years' experience that the Government cannot run a railway."
When he was transport minister in 1984, rail was losing about $1 million a day. Mr Prebble estimated that would be about $3 million in today's dollars.
However, Taieri Gorge Railway chief executive Murray Bond remained convinced the decision was in the best interests of New Zealand.
"There is no better way for the Government to reduce the country's carbon footprint than get more freight on rail. The problem we have had is the Government has said one thing but has never done anything about it."
The decision to transport the Wenita logs by road rather than rail was a prime example of the Government operating in opposition to its own policies by subsidising road transport, he said.
"They can now change that policy of encouraging the use of fuel rather than saving fuel. Surely, Cullen will now realise this and turn it around."
The role railways will play in the country's future will be under scrutiny in new research commissioned by Land Transport New Zealand (LTNZ).
LTNZ national manager of rail regulation John Oldroyd said the new research would be conducted by Beca Carter Hollings and Ferner and would look at the opportunities and barriers of using rail in a sustainable transport industry.
