Auckland Transport has awarded the western package ferry contracts to Kelsian Group and Belaire Ferries to operate passenger ferry services in Auckland Harbour, New Zealand.
The deal is projected by the companies to generate approximately NZ$101 million ($61.6 million) in revenue over an initial seven-year term starting on July 1, 2027.
Alongside the contract win, Kelsian entered into a binding agreement to acquire 100 per cent of Belaire Ferries for NZ$8.9 million. The transaction, funded from existing cash reserves, is expected to close in the first quarter of the 2027 fiscal year.
To service the new contracts, the operators will initially run and maintain a fleet of six vessels, comprising four currently owned by Belaire Ferries and two relocated from Kelsian marine operations in Australia.
To replace the transferred assets, Kelsian disclosed that it will procure a new passenger ferry for its southeast Queensland marine operations.
Kelsian also expects to procure five new ferries over the contract term at an estimated capital cost of NZ$38 million to replace the initial fleet. The first replacement vessel is expected to enter service in mid-2028, with the remaining four deployed between 2029 and 2032.
Funding for these new vessels is expected by Kelsian to be sourced through a limited recourse ringfenced special purpose vehicle.
Meanwhile, the acquisition of Belaire Ferries includes an upfront cash payment of NZ$2.8 million and deferred cash payments estimated by Kelsian at NZ$6.1 million to be paid between the 2027 and 2029 fiscal years based on milestone conditions.