"Commuter rail has been on our horizon for a while," he said.
"I would like us to put together the work to establish a business case."
The case for commuter rail could be built on how well planned park-and-ride facilities were used, Dunedin City Council’s infrastructure services committee chairman Cr O’Malley said.
About 30,000 vehicle movements happened each day between Mosgiel and Dunedin, but park-and-ride facilities and bus services were expected to ease traffic congestion in the years ahead.
A track upgrade would be needed from Mosgiel into Dunedin.
Any serious push for inter-regional passenger rail could happen at some stage through Otago and Southland regional transport committees, together with Canterbury’s committee, as that was how priorities for funding were put in front of Waka Kotahi NZ Transport Agency, Cr O’Malley said.
The Dunedin City Council last month approved a pitch to the Government for a more ambitious rail strategy to make improvements to the Main South Line in Otago and Southland, reintroduce passenger rail on it and add a passing loop between Mosgiel and Caversham.
The council’s submission highlighted that planned rail investment was of limited ambition and focused on the North Island.
The city council called for further investigation into the reintroduction of passenger rail services within Dunedin and the wider region, as well as a resumption in inter-regional passenger services between Christchurch and Invercargill.
Obstacles include slow journey times, capacity constraints for freight and doubt about financial viability.
KiwiRail scenic journeys and commuter rail general manager Tracey Goodall said new public transport connections by rail were ultimately a decision for local and regional councils.
Decisions about new services were best taken by communities that wanted them, she said.
KiwiRail could help local and regional councils consider the levels of investment required to stand up a new service, Ms Goodall said.
Dunedin Mayor Aaron Hawkins said the Government had asked the wrong things of KiwiRail.
"They’ve been asked to run profitable services, which is why we’ve seen a dwindling passenger rail network focused on tourists," Mr Hawkins said.
"They need to be asked how they can best contribute to decarbonising transport."
It made sense to ask the Government to look into the feasibility of a southern service, he said.
Mr Hawkins said the city council would welcome support from other councils after the election.
