The Dunedin City Council is considering whether to push for an inter-regional passenger rail service connecting Christchurch, Dunedin and Invercargill at a meeting next week.
The government is investigating the future of inter-regional passenger rail in Aotearoa.
The council will vote whether to submit to the inquiry at a meeting on Tuesday with its current draft submission calling for the government to be more ambitious about its plans for the lower South Island.
It suggested the government should invest in further investigation of reintroducing passenger rail services within Dunedin and the wider region, including a commuter train between Mosgiel and the southern city.
The Main South Line already connects Christchurch to Dunedin and Invercargill and other communities in between.
The draft submission said a passenger rail service should be reintroduced to the main south line and a passing loop added between Mosgiel and Caversham in the city.
"The DCC submits that the New Zealand Rail Plan and Rail Network Investment Programme has limited ambition to improve outside of the 'golden triangle' and the lower North Island, with a focus in the Southland and Otago regions on maintaining existing [low] level of service," the submission said.
"Improvements to the level of service could release demand for additional freight movements and inter-regional passenger transport.
"If New Zealand wants to achieve its carbon zero goals rail needs to play a much bigger role in our transport system, and greater ambition is needed to drive improvements to rail in the South Island.
"Passenger rail could play a greater role in Dunedin's and New Zealand's future transport system to enable a low emissions future," a report tabled to the meeting said.
"Ministry of Transport work has shown that rail has lower emissions per passenger and freight tonne per kilometre than road transport and is a safer mode of transport."
Submissions close in early October.
RNZ
