Shipbuilder selected for two new Cook Strait ferries

A supplier has been chosen to build two new inter-island ferries to replace the plagued and aging Interislander models.

However, Rail Minister Winston Peters won’t reveal who the supplier is until the “contracts are signed”.

Peters this morning confirmed Ferry Holdings, the Crown company set up to buy two new Cook Strait ferries, had now signed a letter of intent with a preferred ship builder to begin the last stage of negotiations, having completed a closed tender process with six shipyards.

Peters said the shipbuilder and Ferry Holdings had agreed a fixed price and confirmed a 2029 completion in building two 200m-long ferries with road and rail decks, capable of transporting 1500 passengers alongside 2.4km of lanes for trucks, cars and 40 rail wagons.

“The letter of intent is a key milestone in any procurement process as it means the two parties are on the same page for the deal and can now iron out the technical points before signing later this year,” he said.

“The shipyard will be named once the contracts are signed, and we thank the other five shipyards for their competitive engagement throughout this process.

“In a few short months, we will show the taxpayer exactly how we have saved them billions by returning to the no-nonsense ferry replacement solution that was supposed to happen in 2020 but was so wantonly disregarded between 2021 and 2023.”

The replacement of the aging Interislander ferries has been a political football for years and ramped up when the current Government cancelled Labour’s replacement plan, named the iRex project, claiming it would cost $3-4 billion.

In August, KiwiRail settled with Hyundai Mipo Dockyard, who had the iRex contract, with a $144 million final payment following the project’s cancellation.

Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.