WELLINGTON, May 31 (Xinhua) -- New Zealand's rail revitalization plan is a massive forward step for regional development and economic growth, especially for Northland, New Zealand's Deputy Prime Minister Winston Peters said on Friday.

New Zealand's first Wellbeing Budget released on Thursday will invest 1 billion New Zealand dollars (652 million U.S. dollars) in new trains, ferries and regional lines of KiwiRail.

Peters confirmed that the geotechnical and engineering investigation into the Marsden Point spur line is fully complete, and KiwiRail is making progress with plans to revitalize rail in Northland.

Thursday's budget is "a milestone moment towards rebuilding the rail system New Zealanders deserve," Peters said in a statement.

Through Budget 2019, the government is investing 742 million New Zealand dollars (483.50 million U.S. dollars) over two years and has earmarked a further 300 million New Zealand dollars (195.49 million U.S. dollars) for regional rail initiatives through the Provincial Growth Fund.

"This is about setting up KiwiRail to deliver effective rail services. It's about addressing the appalling history of under-investment in our rail system over the last three decades, and enabling growth that will ensure rail is sustainable," he said.

The plan will lay out the vision for rail over the next decade and the level of investment needed to get there, he said, adding it will look at how rail fits into national and regional transport planning, and how rail infrastructure can be funded sustainably.