The New Zealand Government has announced a NZ$596 million ($335 million) fixed-price contract between Ferry Holdings and Guangzhou Shipyard International (GSI) for the construction of two new Interislander Ro-Pax ferries.
The vessels, designed to serve both road and rail, are scheduled to enter service on the Cook Strait in 2029.
Rail Minister Winston Peters stated that the total programme will cost less than NZ$2 billion, with the taxpayer contribution remaining under the NZ$1.7 billion allocated earlier this year.
He noted that this represents a saving of NZ$2.3 billion compared to previous Treasury warnings that the project could cost NZ$4 billion.
“We have done away with the expensive consultants who hijacked the project by adding more and more infrastructure,” Peters said.
He explained that funding spent on "no-nonsense" infrastructure in Picton and Wellington will be recovered over the life of the new assets through port fees paid from Interislander revenue.
The minister remarked that the service will be expected to build sufficient reserves to purchase replacement ferries in 30 years.
Ferry Holdings will lead the infrastructure development, supported contractually by CentrePort, Port Marlborough, and KiwiRail. Peters also confirmed he will travel to Guangzhou next week with the Ferry Holdings Chair to acknowledge the agreement.
