The turbulent saga surrounding New Zealand’s Interislander ferry replacement programme has taken a new turn, with six international shipbuilders now shortlisted to deliver a future-ready fleet. The move marks a clean break from the troubled iReX project, which was officially scrapped late last year after a government funding refusal.
The now-defunct iReX programme, led by KiwiRail, was intended to overhaul the ageing Interislander fleet and deliver upgraded port infrastructure in Wellington and Picton. However, on 13 December 2023, the incoming National-led government declined KiwiRail’s request for further funding, citing mounting cost overruns. With that, iReX was effectively sunk—and the project was formally wound down, with its documentation released in two public phases.
Now, under the stewardship of a new Crown entity—Ferry Holdings Limited—the government is charting a fresh course, focusing squarely on getting two new Cook Strait ferries delivered by 2029, with reduced scope and tighter financial controls.
Fresh start, same vital mission
Transporting both freight and people across Cook Strait remains one of New Zealand’s most critical marine infrastructure needs. With the Interislander fleet showing its age, and maintenance demands increasingly disruptive, this new phase is not just welcome—it’s essential.
Rail Minister Winston Peters confirmed in March that the government would support a new replacement programme. Since then, Ferry Holdings has shortlisted six experienced shipyards to submit proposals.
“These yards have already been reviewed virtually, and in-person visits are scheduled,” said Ferry Holdings Chair Chris Mackenzie, who indicated contracts may be signed later this year.
Procurement partners in place
Determined to avoid the same pitfalls that plagued iReX, Ferry Holdings has assembled a formidable advisory team:
- Knud E. Hansen as naval architects
- OSK Design for interior planning and passenger layout
- Holman Fenwick Willan, maritime legal specialists
- BRS Shipbrokers, assisting in negotiations and procurement logistics
The entity is also currently recruiting a chief executive, aiming to further strengthen its leadership as it progresses toward the 2029 delivery target.
What it means for the marine industry
While the ferry replacement project is government-run, the impact of these developments will ripple throughout the maritime sector. The vessels’ final design, construction methods, propulsion systems, and port interface technologies will shape expectations across both commercial and recreational marine sectors.
One of the big unknowns is whether the sustainability ambitions of iReX—particularly its rail-enabled, hybrid propulsion vessels—will survive in this new iteration. Although there’s been no formal confirmation, the involvement of globally respected firms like Knud E. Hansen and OSK Design hints at a continued focus on innovation and efficiency.
Eyes on delivery
Ferry Holdings expects to finalise contracts before the end of 2025, with the two new vessels entering service by 2029. The shortlisted yards have not yet been named, but are reportedly capable of delivering complex ferries within the required scope and timeframe.
For now, stakeholders across the boating, shipping, and transport sectors are watching closely. Boating New Zealand will continue to follow this story as it evolves, especially as technical specifications and design features begin to emerge.
Sources:
Radio New Zealand | Ferry Holdings Ltd | Ministry of Transport | KiwiRail iReX documents
