KiwiRail says the railway line between Napier and Gisborne needs to be used more if it is to stay open.
The company announced a year ago that four regional lines could close or be mothballed in 2012 unless they became profitable.
KiwiRail national freight manager Iain Hill says that, despite his best efforts, the Napier-Gisborne line is still running at a substantial loss.
He says an average of two freight trains a week on the line is not sustainable.
Mr Hill says the company is relying on the forestry industry to increase the tonnage of rail freight, most of which involves transporting fertiliser.
He says KiwiRail will make a recommendation to the Government in June next year about whether the line should stay open or close.