The first post-earthquake passenger train carried the Prime Minister and some of the rebuild workers who made it possible.

KiwiRail's Coastal Pacific passenger service is getting a $40 million investment, making it a year-round service, Prime Minister Jacinda Ardern has announced.

The cash boost, through the Provincial Growth Fund, is expected to bring $82m into the Marlborough-Kaikōura region by 2027, creating up to 400 jobs.

Ardern made the announcement at Kaikōura Railway Station on Friday after taking the first Coastal Pacific train since the 2016 earthquake.

RICKY WILSON/STUFF Jacinda Ardern disembarks in Kaikōura.

She also revealed the train stations in Kaikōura, Picton and Blenheim would receive upgrades as part of the investment.

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The first post-earthquake passenger train ran on Friday, carrying the Prime Minister and some of the rebuild workers who made it possible.

The line was badly damaged in the magnitude-7.8 earthquake in November 2016, after dozens of massive slips covered the rail corridor and mangled large sections of the tracks.

"We've just been part of an incredible journey, made all the more incredible as we've travelled along the line with stark reminders all along the way of the amount of work that has gone into making it possible for us to stand here right now with the train next to us here," Ardern said.

"This really is an astonishing feat. But the impact of the earthquake hasn't just been physical, we need to acknowledge the impact it had on the community, particular on the local economy. When this line went down, all of that was effected."

RICKY WILSON/STUFF Jacinda Ardern shows a picture of daughter Neve to Coastal Pacific ballot winners Carmel Tindall and Kath Sutton.

​KiwiRail train driver Paul Foskett said he and his colleagues never thought the Coastal Pacific passenger service would run again after the amount of damage they saw following the Kaikōura earthquake.

And Foskett knew more than most about that damage, after being stuck on the coast after the 7.8-magnitude quake hit.

Foskett had just finished his shift on the South Island's east coast moments before the quake hit on November 14, swapping over with his friend.

"I got into my car to go to Picton. I remember thinking I would tie up my tomatoes and go fishing the next day," Foskett said. "But the next thing I knew, I was driving on the wrong side of the road. I didn't realise the earthquake had happened."

The return of the Coastal Pacific on Friday was a "positive moment", he said on the train.

"It's a big moment for all of us, all us locomotive engineers [train drivers]," he said. "We never thought it would be opened again after the amount of damage we saw."

Stuff Prime Minister makes pledge as she takes the first passenger service since the earthquake. (Video first published on November 23, 2018)

​Foskett remembered pulling over on State Highway 1 and quakes were "sill going off".

"The road had opened up in front of me. It looked like a staircase. I pulled over, and got out of the car when the mother of quakes went off and threw me off my feet. I dived into the car to ride it out."

It wasn't until the following day, in Blenheim, when he could contact his family.

Foskett said his partner had lost someone during the Christchurch earthquake and was "distraught" as she was unable to contact Foskett.

"I think it affected them more than me, as I was doing too much to think about anything," Foskett said.

KiwiRail acting chief executive Todd Moyle said re-opening the line was "critical to regional economies".

RICKY WILSON/STUFF Passengers take their seats for the trip to Kaikōura.

He said pre-quake, the Coastal Pacific brought about 42,000 passengers a year into Marlborough and Kaikōura alone.

"These passengers were estimated to spend $34 million across the two regions, supporting about 300 local jobs."

Moyle said he could not praise highly enough the workers who undertook the "massive task" of getting the line ready to carry passengers again.

RICKY WILSON/STUFF From the open-air viewing carriage.

Crafar Crouch contractor Darryl MacDonald said reconstructing the rail had been a "big task".

"It involved thousands of people spending a lot of time and effort to get this going, and it's all come together," MacDonald said.

The biggest task he was involved in was south of Clarence, where the rail had moved about 20 metres from its original position.

"It was a huge effort to get it back," he said.

KiwiRail foreman Wik Botha said his day-to-day tasks involved "long hours" and "hard work".

Botha said he ran maintenance works, formation works and speed restrictions on the railway line while it was being repaired.

"You do months and months of work with little results, then all of a sudden boom, the freight trains are up and running, the Coastal Pacific is back, and all of our hard work pays off."

RICKY WILSON/STUFF The prime minister poses for a selfie on Friday.

​The regular Coastal Pacific tourist service would resume on December 1, marking a return to full services on the line.

Overnight freight services on the line had been running since September 2017, though they had to be put on hold several times due to bad weather. The line was kept clear during the day so work could continue.

Daytime freight services started on the line in October.

Alice Angeloni/Stuff The first passenger train has pulled out of Blenheim since the earthquake.

Marlborough Mayor John Leggett said the passenger service restarting was "the icing on the cake" of the region's two year-long recovery.

"This time last year we had the reopening of State Highway 1, which was a wonderful Christmas gift for Marlborough and gave a big boost to everyone here," he said. "We're seeing a lot of overseas and regional migration to Marlborough now - many new people have relocated here in recent years. It helps that we have interesting job opportunities thanks to our wine, seafood, horticulture and tourism industries."

RICKY WILSON/STUFF Prime Minister Jacinda Ardern boards the train in Blenheim.

RICKY WILSON/STUFF Crafar Crouch contractor Darryl MacDonald, left, and KiwiRail foreman Wik Botha.

SUPPLIED/KiwiRail The first passenger train on the Coastal Pacific since the 2016 quakes will leave Picton at 8am Friday.

KIWIRAIL The return of KiwiRail's Coastal Pacific journey is set to boost tourism in Kaikōura.

RICKY WILSON/STUFF KiwiRail's Coastal Pacific train at Blenheim Railway Station on Friday morning.

SUPPLIED/KiwiRail Before the quakes, the Coastal Pacific was estimated to bring in 42,000 visitors to the Marlborough and Kaikōura region.