A $274 million tunnel plan linking Queenstown with Milford Sound has been dusted off and lobbed back into public view.
MSLR Ltd wants to punch a 13.5km rail tunnel under mountains between the Dart and Upper Hollyford valleys - shortening what is now a 600km round-trip by road to 240km.
The proposal stretches back to 2003, but two other projects - Milford Dart Passage Project and Fiordland Link Experience - gathered a greater head of steam and were submitted to the Government.
Both have now been rejected.
MSLR's plan has been submitted to the Queenstown Lakes District Council's long-term plan.
Managing director Colin Jenner, of Queenstown, an engineer and former council roading manager, told the Otago Daily Times: ''The main point of this is the council called for submissions for the 10-year plan. For us to just bury our head in the sand and say it isn't going to happen is ridiculous.
''Sooner or later a tunnel will go through there.
''So council should at least recognise the fact there is a major change, perhaps, in the passage of people going to Milford ... and they should be taking that into account in all their deliberations and planning for the future.''
The proposed tunnel would be built under the Humbolt and Ailsa Mountains.
Ten rail wagons could take a large tourist coach each, transporting up to 700,000 passengers a year.
For the project - which would take seven years to complete - to gain momentum, its 2008 feasibility study needs updating and an environmental impact assessment needs to be done for the Department of Conservation.
Asked how close MSLR is to getting financial backing, Mr Jenner said it was hard to say.
''We've had some discussions with two or three groups and there is still a little bit of correspondence going to and from.''
The groups are offshore.
