The Dunedin City Council has established its preferred option for the Taieri Gorge is to hold on to its company Dunedin Railways and the railway tracks from near Dunedin through to Middlemarch.
It appears set to decide it does not need to look into cycling and walking options in the gorge.
Backing the rail link would come at a price, as a catch-up on track maintenance is needed.
Councillors will consider this week whether they favour directing the rail firm’s parent company Dunedin City Holdings Ltd (DCHL) to provide up to $2 million a year to fund renewal of the Taieri Gorge rail corridor while accepting a reduced dividend from DCHL for two years.
In a report for councillors, the council said Dunedin Railways was set to prepare a strategic plan in the next 12 months "to deliver a sustainable model to retain rail services on the Taieri Gorge line, with supporting financial information, delivering on its vision".
The firm would "transition to a position where the business breaks even, excluding track maintenance costs, as soon as feasible".
The council had decided in January 2023 it wanted to retain a train service in the gorge.
Its formal decision-making went slightly further during a council meeting for which the specific agenda was not made public, on December 10 last year, when it decided retaining Dunedin Railways and the track to Middlemarch was its preferred option for inclusion in the draft 2025-34 long-term plan for public consultation.
A report for this week’s meeting said an assessment of cycling and walking options and liaising with various groups was no longer needed because "these activities cannot exist on the rail corridor, as the train service has been retained".
Staff recommended the council revoke earlier decisions that asked staff to assess options for rail, cycling and walking, as well as governance options and liaising with groups interested in the future use of the rail corridor.
These were presented as being overtaken by events.
Businessman and Middlemarch resident Richard Emerson said bringing trains back to the town would be a welcome move.
"It will a great boost to the overall wellbeing of the Middlemarch community," he said.
"Like any business, the train will need time to grow with the momentum and influx of tourism back in New Zealand."
Since the Covid-19 pandemic, limited services have run between Dunedin and Hindon and there have recently been trips to Pukerangi.
Mr Emerson said a limited service connecting with the Otago Central Rail Trail at Middlemarch was the next logical step.
Strath Taieri Community Board chairman Barry Williams said the board had been clear it wanted Middlemarch to again be a destination for train trips.
Board member Robin Thomas said a journey that went part of the way did not get across the full story of heritage and range of landscapes.
Mosgiel-Taieri Community Board chairman Andrew Simms said the council seemed to have closed off an opportunity to present two compelling narratives to the public to assess support — putting money into Dunedin rail or having a cycle trail instead.
"Going to these extraordinary lengths of rescinding previous resolutions of council to seemingly try and take the option of a cycle trail off the table so that it’s not part of the consultation sounds extraordinary to me."
He also doubted a $2m annual subsidy would be enough for the council to achieve what it was looking to do.
