Cabinet today agreed on 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 that 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.
Key specifications of the new ferries
- The new ferries will be approximately 200 metres long and 28 metres wide.
- The ferries will have the capacity for 1,500 passengers, and 2.4 kilometres of lanes for cars, trucks, and 40 rail wagons, on each.
- A key design consideration was to ensure they can operate through the Tory Channel, operate at a speed of 20 knots and be highly manoeuvrable.
- Most importantly, the new ferries will be designed with modern systems, redundancies and future-proofing solutions to reduce carbon emissions.
Key dates for the project
Ships Procurement
| Commence ship procurement with shortlisted shipyards | April |
| Key ship procurement advisors (e.g. naval architects, lawyers, broker) appointed | April |
| Request for Proposal response due back from shipyards | June |
| Letter of Intent signed with preferred shipyard | Q3 2025 |
| Ship contract negotiation | Q3 2025 |
| Ministerial decisions on ship contracts
Ship contracts executed |
Q4 2025 |
Port Infrastructure
| Multi-party commercial negotiations commence | Q2 2025 |
| Commercial Agreements reached on multi-party infrastructure scope, costs and programme schedule | Q3 2025 |
| Enabling works commence | Q3/Q4 2025 |
| Ministerial decisions on infrastructure funding
Port and other party agreements executed |
Q4 2025 |
Ferry Holdings
| Ferry Holdings assumes full responsibility for the project from the Treasury
Interim management team in place Engagement of critical advisors commences |
April 2025 |
| Ferry Holdings led governance structures in place with Ports and KiwiRail | Q2 2025 |
| Business case for funding and implementation | Q3 2025 |
