New Zealand is set to strengthen its Cook Strait transport lifeline with two new Interislander ferries entering service in 2029.
Rail Minister Winston Peters has announced the plan for two new rail ferries to enter service in 2029, continuing the 60-year legacy of the Interislander connecting New Zealanders and their goods.
Cabinet today agreed the package which Mr Peters says will deliver the appropriate ships and infrastructure for the job at a significant saving for the taxpayer.
“Our solution will be markedly cheaper than the cancelled $3.1 billion programme and the $4 billion warning the previous Government received. That’s because of a minimum viable and maximum reuse approach for the port infrastructure,” Mr Peters says.
“The future Interislander ferries will have road and rail decks, given the efficiency of single shunt movements for multiple rail wagons for loading and unloading.
“The design specifications chosen include vessel lengths of approximately 200 metres – longer and wider than the current fleet and capable of serving our people and goods into the future, but shorter than the large ferries ordered in 2021 which created significant infrastructure issues.”
Mr Peters says in addition to selecting the appropriate rail ferry specifications, getting the infrastructure right is essential for a cost-effective solution.
“The marine infrastructure in Picton requires replacement, so it will be replaced. The marine infrastructure in Wellington has life left in it, so it will be modified and re-used.
“Our analysis showed this to be the most cost-effective option, and contrasts sharply with the wanton demolition and extravagant specification under the cancelled project, where they assumed almost all costs would be at the taxpayers’ expense.
“We are extraordinarily grateful to our small Ferry Holdings team and the hard work put in across the three companies,” Mr Peters says.
Now the mode and specifications have been selected, the Ferry Holdings Board will shortlist shipyards to compete on price and quality, with a ferry contract awarded later this year. Ferry Holdings will also work with Port Marlborough, CentrePort and KiwiRail to finalise the scope, progress engineering, strengthen the delivery programme and agree co-funding terms.
Infrastructure New Zealand reponse
Infrastructure New Zealand is emphasising the importance of building long-term resilience into the Cook Strait ferry project, following today’s announcement by the Minister for Rail on the project’s next steps.
“The proposed procurement of two new ferries, expected to enter service in 2029, is a positive development,” says Infrastructure New Zealand Policy Director, Michelle McCormick.
“However, the success of the project hinges not only on the vessels themselves, but equally on the robust replacement and redevelopment of their port side infrastructure.”
“A significant proportion of the project’s cost will be tied to these land-based assets, and it’s vital that New Zealand achieves both good value for money and a future-proofed service.”
“Ensuring reliability and resilience is critical,” McCormick says. “As we face increasing risks from adverse weather and seismic activity, we must design infrastructure that stands the test of time.”
“The Cook Strait is a lifeline for New Zealand’s economy and a vital connection between our communities. It is too important to fail.”
“Certainty around delivery timeframes is essential and we look forward to Ferry Holdings taking full responsibility for the project and engaging experts to ensure that the project stays on track and delivers what New Zealanders expect.”
We also await with interest the appointment of a shipbuilder and clarity around how private sector expertise will be brought to the table,” says McCormick.
About Cook Strait
Cook Strait, the narrow body of water separating New Zealand’s North and South Islands, is both a national connector and a natural barrier. At its narrowest point, it spans just 22 kilometres, yet it plays an essential role in the movement of people, freight, and goods across the country.
The strait is named after James Cook, the first European commander to sail through it, in 1770.
However, Cook Strait is notoriously rough—ranked among the world’s most dangerous stretches of water due to unpredictable weather, powerful tides, and frequent seismic activity. That makes resilient ferry and port infrastructure critical.
For decades, Interislander ferries have kept this link running, but ageing vessels and outdated port facilities have led to delays, cancellations, and rising maintenance costs. A previous $3.1 billion upgrade plan was scrapped due to its scale and expense, leaving urgent questions around long-term transport resilience.
Now, with a new plan to introduce two modern ferries by 2029 and a renewed focus on cost-effective, future-proofed port infrastructure, there’s hope that New Zealand can finally address Cook Strait’s infrastructure shortcomings.
Read more on the topic: NZ will soon have no real interisland rail-ferry link – why are we so bad at infrastructure planning?
Source: New Zealand Government
Source: Infrastructure New Zealand
