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State-owned KiwiRail is blaming the recession for a 13 percent fall in its freight volumes.

It also said the proposed increase in the weight trucks are allowed to carry could affect 10 percent of its revenue.

The company's three ferries carried 2.2 percent fewer commercial vehicles, 6.4 percent fewer passengers and 2.9 percent passenger vehicles.

The financial information in the annual report tabled in Parliament today is a challenge to interpret due to the change in ownership when Toll Holdings Ltd exited taking the large road transport and freight forwarding business with it, accounting treatments and the taking back of work once outsourced to United Group.

KiwiRail reported a loss before Crown and regional council funding of $186 million in the year to June 30. After the funding it reported a surplus of $238.7m.

The company values the network the Government bought back for $1 at $5.8 billion and has total plant, property and equipment of $13 billion. Consequently it incurs large depreciation charges.

Before depreciation of $215.9m and finance charges of $34m KiwiRail reported a profit of $63.33m.

Chairman Jim Bolger said the company has been able to concentrate solely on rail and ferry customers since Toll exited.

Shareholding ministers had made it clear that KiwiRail must operate as a commercial business.

KiwiRail operates the commuter rail services in Wellington and the number of passengers carried increased 2.8 percent on last year.

The company carried a record 729 million litres on the "milk route" from southern Hawke's Bay to processing facilities in Taranaki.

The company details spending on the rail network and rolling stock, which has already been signalled, and notes that the Arahura ferry, the only one it still owns, is within seven years of needing to be replaced.

The annual report includes an endorsement of rail services from Hall's Refrigerated Transport, which is owned by Toll Holdings.