The Government has saved the taxpayer billions with two new Interislander ferries from Guangzhou Shipyard International and no-nonsense infrastructure in Picton and Wellington, Rail Minister Winston Peters announced today.

“Two new ferries serving road and rail will enter Cook Strait service in 2029, thanks to a $596 million fixed price contract between Ferry Holdings and experienced shipbuilder Guangzhou Shipyard International,” Mr Peters says.

“The total programme will cost less than $2 billion, with the taxpayer contribution coming in under the $1.7 billion allocated at the start of this year.

“Spending less than $1.7 billion means the taxpayer has saved $2.3 billion while still getting the ferries and infrastructure they want, because we have done away with the expensive consultants who hijacked the project by adding more and more infrastructure until Treasury warned the project would cost $4 billion.

“Funding spent on infrastructure will be recovered over the life of the new Interislander ferries and infrastructure through port fees paid from Interislander revenue, and Interislander will be expected to build sufficient reserves to buy new ferries again in 30 years – or put simply, structured like a normal business.

“We extend our thanks to the Ferry Holdings board and management team and the pragmatists at CentrePort, Port Marlborough and KiwiRail who heard the clarion call for fiscal discipline to secure the Strait.

“Ferry Holdings will be in the driving seat for the infrastructure, ably and contractually backed by CentrePort, Port Marlborough and KiwiRail, and accommodations will be made to minimise disruption to Interislander and Bluebridge.

“Next week we will travel to Guangzhou with the Ferry Holdings Chair and Ships Programme Director to acknowledge the significant agreement, not just between the shipyard and Ferry Holdings but also as a contribution to economic relations with China,” Mr Peters says.

News from Ferry Holdings Ltd
Ferry Holdings Limited welcomes the Government’s investment decisions to progress the Cook Strait Ferry Replacement Programme.

This announcement marks a significant milestone in delivering a resilient, low-emission, and future-ready transport solution for New Zealand. The procurement of two new rail-enabled ferries, alongside targeted infrastructure upgrades at Wellington and Picton, reflects a collaborative commitment to modernising inter-island connectivity.

“These vessels are not just replacements, they are a generational investment in New Zealand’s maritime and rail future, built to deliver value, resilience, and sustainability for decades to come,” said Chris Mackenzie, Chair of Ferry Holdings Limited.

Ferry Holdings is also delivering fit-for-purpose port infrastructure using a “minimum viable and maximum reuse” approach to reduce costs, and delivery risk. “We are delivering the infrastructure New Zealand needs—by reusing what works and upgrading only what’s essential. It’s a smart, sustainable approach that puts public value first,” added Chris Mackenzie.

Since its establishment in March 2025, Ferry Holdings has worked closely with KiwiRail, CentrePort, Port Marlborough, and government agencies to ensure the programme meets national transport needs and delivers value for money.

‘We look forward to continuing our partnership with stakeholders to deliver safe, reliable, and sustainable ferry services