Rail Minister Winston Peters has revealed two new Cook Strait ferries will enter service in 2029 with rail decks and the capacity for 40 wagons.
Cabinet agreed on the package earlier today, which Peters announced ahead of the Prime Minister’s post-Cabinet media conference later this afternoon.
Peters said the package would be cheaper than the previous government’s plan with a “minimum viable and maximum reuse approach for the port infrastructure”. He said the contracts to build the ships themselves will be fully locked down by the end of the year.
The Rail Minister said: “Our solution will be markedly cheaper than the cancelled $3.1 billion programme and the $4 billion warning the previous government received. That’s because of a minimum viable and maximum reuse approach for the port infrastructure.”
An expected price tag for the two new ferries and port infrastructure was not provided in today’s announcement, but Peters said “we are saving the taxpayers billions”.
New Interislander ferries will have capacity for 1500 passengers, and 2.4km of lanes for cars, trucks, and 40 rail wagons. (Source: 1News)
The new ferries will be approximately 200m long and 28m wide, with capacity for 1500 passengers and 2.4km of lanes for cars, trucks, and 40 rail wagons each.
“The future Interislander ferries will have road and rail decks, given the efficiency of single shunt movements for multiple rail wagons for loading and unloading,” Peters said.
“The design specifications chosen include vessel lengths of approximately 200m – longer and wider than the current fleet and capable of serving our people and goods into the future, but shorter than the large ferries ordered in 2021 which created significant infrastructure issues.”
It comes as Finland’s ambassador tells Winston Peters shipyards from his country are very interested in the contract. (Source: 1News)
The coalition cancelled the previous Labour government’s plans to build new ferries in South Korea after entering office in late-2023 over budget estimate blow-outs.
The situation is being labelled an “omnishambles” by the Government’s opponents, Benedict Collins reports. (Source: 1News)
Subsequently, the Government has been tight-lipped about whether the new ferries would be “rail-enabled” for “roll on” and “roll off” operations or simply “rail compatible”.
Peters described the new vessels as “rail ferries” in his announcement today.
Marine infrastructure to be replaced in Picton
Peters said marine infrastructure would now only be replaced in Picton.
“The marine infrastructure in Picton requires replacement, so it will be replaced. The marine infrastructure in Wellington has life left in it, so it will be modified and re-used.
“Our analysis showed this to be the most cost-effective option, and contrasts sharply with the wanton demolition and extravagant specification under the cancelled project”.
The Government, however, won’t say how much the new ferry plan will cost. (Source: 1News)
According to Peters, the project timeline will begin with shipyard procurement in April alongside the appointment of advisers including naval architects and legal specialists.
Shipyard proposals are due in June, with officials expecting to sign a letter of intent with the preferred builder in the third quarter before finalising contracts by year-end.
Port infrastructure work will proceed through commercial negotiations starting in the second quarter, with enabling works beginning in late 2025.
Ferry Holdings will manage the process after taking over from Treasury, establishing governance structures with ports and KiwiRail by mid-year and developing a business case for funding and implementation in the third quarter.
Contract with Hyundai to build two new Interislander ferries as well as infrastructure contracts were canned after the coalition took office. (Source: 1News)
In 2018, the then-Labour-led government struck a deal for two mega rail-enabled ferries to be built in Korea at a cost of $551 million. They were due for delivery in 2026.
But in December 2023, the current Government declined further funding for the project, and said the price tag had blown out largely due to the upgrades required to hold the mega ferries at both ports in Wellington and Picton.
The decision has been subsequently criticised by the political opposition and transport lobby groups for creating uncertainity over the vital Cook Strait link.
According to Finance Minister Nicola Willis at the time, accounting for the upgrades to the port terminals, the price of the project had gone from $700 million to $3 billion, and only 21% of that cost was associated with the “core project of replacing ageing ferries”.
Labour criticises lack of detail
Labour, who’s ferries programme was cancelled by the coalition, highlighted Peters’ plans had no details on the expected costs of the new boats or marine infrastructure.
The party’s transport spokesperson Tangi Utikere said: “Due in 2029, all we know is that the ferries are smaller than those Winston Peters was involved with negotiating in the first place. That must have been a hard pill to swallow for the Minister for Rail.
“Now we are shopping for smaller ferries, and a whole lot of cash has been sunk at the bottom of the Cook Strait. That’s all down to the Minister of Finance.
“All Winston Peters has announced today is that New Zealanders will be waiting another three years for ferries and still have no idea how much they’re going to cost.”
