New Zealand Secures Chinese Shipbuilder for Cook Strait Ferry Replacement
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New Zealand has contracted Guangzhou Shipyard International (GSI), a Chinese state-backed enterprise, to construct two new ferries for the Cook Strait crossing, Rail Minister Winston Peters announced today. The deal aims to replace the aging Interislander fleet adn promises a fixed price and 2029 completion date,following the cancellation of a previous,considerably more expensive project.
A New Course for Ferry Procurement
The agreement with GSI, a Shanghai and hong Kong Stock Exchange-listed company founded in 1954, marks a shift in strategy for the ferry replacement program. According to a release from the Minister’s office, GSI was selected for its “competence, capability and capacity.” Peters emphasized the government’s commitment to securing the best possible deal for New Zealand taxpayers.
“We want the best deal possible for New Zealand taxpayers and a shipbuilder of the competence, capability and capacity of GSI underscores the high degree of confidence in our no-nonsense ferry replacement program,” Peters stated.
Key Specifications and Timelines
The new ferries will be 200 meters in length and feature both road and rail decks, capable of carrying up to 1500 passengers each. They will also accommodate 2.4 kilometers of lanes for trucks, cars, and 40 rail wagons per vessel. The government has secured a fixed price for the construction and anticipates delivery by 2029.
Further details of the agreements, including port agreements with Port Marlborough and Wellington’s Centreport, are still under negotiation by Ferry Holdings Limited. peters indicated that a more comprehensive proclamation detailing the financial savings achieved through this new approach is expected before the end of the year.
Scrapping iReX: A Costly Cancellation
The decision to partner with GSI follows the cancellation of the iReX ferry project, initiated by the previous Labor-led government. the iReX scheme ultimately cost $671 million without resulting in the delivery of any new vessels.
in August, KiwiRail reached a settlement with South Korean shipyard Hyundai Mipo Dockyard following the project’s termination. the current government accused the previous governance of allowing costs to escalate, asserting that a more affordable solution was attainable. “We intend to make an announcement before the end of this year detailing our agreements and how we have saved the taxpayer billions by cancelling project iReX and returning to the no-nonsense solution we started in May 2020,” peters said.
Infrastructure Upgrades to Support New Ferries
Alongside the construction of the new ferries, significant infrastructure improvements are planned. These include the construction of new wharves and linkspans in Picton, an extension of the existing wharf in Wellington, and the building of an overbridge at Dublin St in Picton to separate road and freight train traffic. The Interislander ferry Aratere has recently been retired to facilitate these infrastructure works.
Peters highlighted the speed of the procurement process, noting that Ferry Holdings has delivered a multi-year undertaking within nine months. “Nobody can accuse us of a lack of pace when Ferry Holdings is delivering a multi-year procurement proce
why: The aging Interislander fleet needed replacement, and the iReX project proved too costly. The government sought a more affordable and efficient solution.
Who: New Zealand (through Rail Minister Winston Peters and Ferry Holdings Limited) contracted Guangzhou
