Rail Ferries and Streamlined Infrastructure

  • Rt Hon Winston Peters

Rail Minister Winston Peters has announced the plan for two new rail ferries to enter service in 2029, continuing the 60-year legacy of the Interislander connecting New Zealanders and their goods.

Cabinet today agreed the package which Mr Peters says will deliver the appropriate ships and infrastructure for the job at a significant saving for the taxpayer.

"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," Mr Peters says.

"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.

"The design specifications chosen include vessel lengths of approximately 200 metres - 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."

Mr Peters says in addition to selecting the appropriate rail ferry specifications, getting the infrastructure right is essential for a cost-effective solution.

"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, where they assumed almost all costs would be at the taxpayers' expense.

"We are extraordinarily grateful to our small Ferry Holdings team and the hard work put in across the three companies," Mr Peters says.

Now the mode and specifications have been selected, the Ferry Holdings Board will shortlist shipyards to compete on price and quality, with a ferry contract awarded later this year. Ferry Holdings will also work with Port Marlborough, CentrePort and KiwiRail to finalise the scope, progress engineering, strengthen the delivery programme and agree co-funding terms.

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