Cook Strait ferries: 'No nonsense' infrastructure deal — Peters

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July 01, 2025

Key infrastructure agreements have been struck between port operators and government agencies ahead of the arrival of replacement Cook Strait ferries in 2029.

Ferry Holdings Limited's agreements with CentrePort, Port Marlborough and KiwiRail set out the scope of physical work and equipment to be delivered by 2029 when two new Interislander vessels arrive, Rail Minister Winston Peters announced this morning.

In Picton, new wharves and linkspans will be built, while in Wellington, "we will be maximising the use of the existing Aratere infrastructure by modifying and strengthening the existing wharf to suit new ferries for the next 30 years and building a new linkspan".

The existing wharf in Wellington would be extended "by the minimal amount necessary to accommodate the new, larger ships".

Contract with Hyundai to build two new Interislander ferries as well as infrastructure contracts were canned after the coalition took office. (Source: 1News)

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"Perfectly good yards will continue to serve us as they have for decades," Peters said.

An overbridge would also be built at Dublin St in Picton, the minister confirmed, which would separate road traffic from freight trains.

The new bridge would "rid the town of the blocked streets it will experience when freight-laden trains arrive at the port. The road and rail will be grade-separated before 2029 as a safety and efficiency improvement for road and rail."

Peters said: "The ports and KiwiRail have agreed to minimal scope improvements to the yards, avoiding much of the costly scope creep which occurred under iReX, which sought to lift the yards by metres and then complete required reconfigurations."

New Zealand First leader Winston Peters. (Source: 1News)

He added, criticising the previous Labour government: "This is not our first regatta, as this no-nonsense infrastructure focus is what was supposed to happen in 2020 until poor management and a lack of oversight allowed iReX to blow out."

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Peters has faced criticism from the opposition as he was part of the Labour coalition government, which first decided to replace the Interislander ferries.

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New Zealand First, Peters' party, subsequently entered into a coalition with National following the 2023 election. The Government went on to cancel existing contracts for new ships as one of its first major moves in office after major cost escalations.

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