The government has unveiled plans to establish a new state-owned company to procure two ferries for the Cook Strait, aiming to replace the aging fleet by 2029.
In making the announcement Finance Minister Nicola Willis highlighted the importance of a safe, reliable, and commercially viable ferry service to connect the North and South Islands, while also pledging to avoid the ballooning costs of the abandoned iRex project.
The project’s funding envelope remains confidential, but the government has committed to leveraging existing infrastructure and inviting private sector proposals to ensure innovative and cost-effective solutions. Minister for Rail Winston Peters highlighted the need for a cautious approach, noting that prior mismanagement led to a cost explosion in the iRex project, initially estimated at $775 million but projected to reach as high as $4 billion.
The iReX project aimed to replace Interislander’s three aging Cook Strait ferries with two larger, rail-enabled vessels. However, the coalition government scrapped the initiative in December 2023, citing significant cost overruns and rejecting KiwiRail’s request for an additional $1.47 billion to fund the upgrade.
Opposition parties have been scathing, accusing the government of failing to deliver concrete outcomes a year after canceling iRex. Labour leader Chris Hipkins criticised the plan as an “announcement of an announcement,” arguing that the decision to scrap the original contract damaged New Zealand’s international reputation and will result in higher long-term costs. The Greens and Te Pāti Māori expressed frustration over the lack of clarity on costs, timelines, and train-carrying capabilities for the new ferries.
Meanwhile, ACT leader David Seymour celebrated the cost-saving measures but doubted the feasibility of rail-enabled ferries, suggesting private investment could streamline operations. Amid criticism, Willis and Prime Minister Christopher Luxon defended the plan, asserting it would deliver value for taxpayers and avoid the pitfalls of the previous project.
As the government navigates complex negotiations with stakeholders, questions linger over whether this strategy will meet New Zealand’s transportation needs effectively. While Winston Peters pledged rapid progress and engagement with industry experts, critics argue the delays and lack of specifics undermine confidence in the project. With the first procurement decisions expected in March, the government faces mounting pressure to deliver tangible results and assuage concerns about escalating costs and project delays.
KiwiRail welcomed the announcement, saying it gave certainty to regular passengers and freight customers.
“It is pleasing that the Government has chosen to invest in the future of Cook Strait ferry services by deciding to procure two brand new ships, which will safeguard reliability into the future,” KiwiRail Chief Executive Peter Reidy said.
If a tunneling project had been commenced 10-15 years ago between North & South Islands at the shortest land-based points with a State-owned TBM, than maybe the ferry issue would be a moot subject…
If EQ Structural Engineers were brought in to assist with the build the tunnel infrastructure regarding EQ resistant, then we wouldn’t be having the problems of old, unreliable ferries at this point.
There wouldn’t be problems with weather delays…or breakdowns / collisions at sea / groundings / terrible sea conditions enroute.
There wouldn’t be problems with ferry maintenance, inspections, and diesel exhaust where the exhaust particulate is all over Picton, and hangs around the town on a calm day, and the townsfolk breathing in the same.
There wouldn’t be a so-called politicised ‘Carbon Footprint’ from the diesel engines of the ferries.
Three tunnels (north & southbound lanes for vehicle traffic) and a separate rail tunnel would have been completed by now, with a reasonable toll to pay for and maintain the 3-Tunnel EQ Resistant Tunnel System.
The toll collected to maintain the system would be a lot less expensive as opposed to running a ferry fleet on the surface…
I assume that the ferry will be free for tax payers seeing tax payers are paying for it?
I call for the South Island to secede from the North Island
What will transpire a being the best option
The original Kiwi Rail proposition since scuttled with break fees
Or the latest fiasco debacle deals being hatched out now in smokey back rooms?
Time will tell
As we all know the cheapest option is not always the best option and in the big picture
Which is why all tenders used to say “the highest or lowest tender not necessarily accepted”
One things for sure
Cracks are starting to appear in what is called the “Coalition”
a.k.a loose canons
Criticisms are being openly and forthrightly traded and directed at partners with nobody seemingly having a handle on this resulting in contradictions and confusion
Sorry folks but the lil old NZ we used to know and love is gone and is no more at the hands of treasonous incompetent shysters who are taking Us all for a ride and playing with Our lives
Should NZ become a part of Australia, then the North Island would be re-named ‘Aotearoa’, and the South Island renamed ‘New Zealand’.
If we don’t have Armed Neutrality in 5 years time, then we may see the merger of NZ & Oz come to fruition, based on the 1911 Invitation of Australia to join with it.
BUT-
The recent 20+ years of ‘Global Governance’ in Oz would have to come to an end…
Privatisation of the Cook Straight channel means companies who invest will require a significant profit margin. If the proposal had say 4 operators, perhapps that may allow competitive prices.