The government has confirmed that Guangzhou Shipyard International (GSI) — one of China’s leading shipbuilders. That will construct the two new Interislander ferries, set to enter service in 2029.

The announcement marks a major milestone in replacing the ageing Interislander fleet. Securing a long-term solution for one of the country’s most vital transport links between Wellington and Picton.

💬 A Fresh Start After the iReX Project
The new ferry deal comes after Finance Minister Nicola Willis scrapped the previous government’s $3 billion Cook Strait mega ferry plan (iReX) in 2023, citing runaway costs and “poor fiscal management.”

Instead, the coalition government has opted for what Rail Minister Winston Peters called a “no-nonsense, cost-effective solution” that delivers modern. Reliable ships without the financial blowout.

🛳️ What We Know About the New Ferries

• Shipbuilder: Guangzhou Shipyard International (GSI)
• Length: 200 metres each
• Rail-enabled: Capable of carrying freight trains directly on and off the vessels
• Service start: Expected in 2029
• Operator: Ferry Holdings Limited (procurement company)

Peters said the selection of GSI reflects confidence in its “competence, capability,.and capacity” to deliver on time and within budget.

“We want the best deal possible for New Zealand taxpayers,” Peters said. “These ferries will strengthen our national transport network, protect jobs, and future-proof trade links for decades to come.”

⚙️ Negotiations Underway
Talks are still ongoing between Ferry Holdings Limited and GSI, as well as with CentrePort (Wellington). And Port Marlborough (Picton) regarding the supporting port infrastructure. The government expects to reveal full details — including cost savings and updated design plans — by the end of 2025.

Peters added that the new plan had saved taxpayers “billions” compared to the original iReX proposal.

⚓ Farewell to the Aratere
In a symbolic shift toward the future, KiwiRail has sold the aging Interislander ferry Aratere. will soon head to a specialist recycling yard in India. The vessel’s retirement clears the way for port upgrades necessary to accommodate the new ships.

🌊 Why It Matters
The Interislander ferries are a lifeline for New Zealand. Carrying passengers, vehicles, and freight across Cook Strait daily. With these replacements, the government aims to ensure reliability, sustainability, and cost efficiency well into the future.

🟢 What’s Next
The final design, cost details, and port infrastructure plans are expected to be announced before the end of the year. Until then, Ferry Holdings Limited and GSI will continue technical and contractual preparations.

📍 Stay tuned to One Network Wellington Live for updates on New Zealand’s new Interislander fleet and the future of our Cook Strait connection