New Zealand’s KiwiRail terminates ferry contract with South Korean shipyard

New Zealand transport company KiwiRail has started discussions with South Korea’s Hyundai Mipo Dockyard (HMD) to enter a termination agreement for the contract for the build of two new Ro-Pax ferries.

KiwiRail said this follows the New Zealand Government’s decision last year not to provide further funding for the Inter-Island Resilient Connection (iReX) project.

The government has announced that it will appoint a ministerial advisory group (MAG) to provide independent advice and assurance to ministers on the future options for a Cook Strait connection. The Ministry of Transport will also lead an assessment of long-term inter-island service requirements.

KiwiRail expects replacement options for the Interislander ferries to be part of these broader reviews. The company will be working with its customers and international shipbrokers on options to source suitable replacement ferries.

KiwiRail said it will be working closely with the government, the MAG, and all stakeholders on options for a safe, reliable, and resilient Cook Strait connection to transport freight and passengers.

The HMD-built ferries were originally slated to replace KiwiRail’s three ageing Interislander ferries, which are nearing the end of their respective operational lives.

The replacement vessels were to be designed with battery hybrid propulsion systems and facilities for handling both rail and Ro-Ro cargo.