New Zealand Awards Construction of Inter-Island Ferries to Guangzhou Shipyard International
The New Zealand government has selected Guangzhou Shipyard International (GSI) of China to build a new generation of inter-island ferries, marking a key step in the politically sensitive project to modernize the nation’s maritime and rail connection between the North and South Islands.
Transport and Railways Minister Winston Peters announced the decision, confirming that contract negotiations are underway and new port agreements have been signed.
“We want to secure the best possible deal for New Zealand taxpayers, and GSI’s proven capability underscores confidence in our practical ferry replacement program,” Peters said.
He added that the contracts are expected to be finalized by the end of 2025, with construction to be completed by 2029.
Two New Ferries for Cook Strait: Design and Capacity
The project calls for the construction of two modern 200-meter (656-foot) ferries, each featuring:
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Capacity for 1,500 passengers,
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2.4 km of truck lanes,
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Space for 40 rail wagons,
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Separate road and rail decks.
Once delivered, the new ferries will operate across Cook Strait for at least 30 years, ensuring a reliable and efficient transport link between the islands.
Political Background and the “Practical Solution”
The ferry replacement effort began in 2020 but became politically controversial after the earlier iReX project was terminated in 2023 due to rising costs.
Originally, construction contracts were signed with South Korea’s HD Hyundai, but the government canceled the deal and paid compensation.
Peters emphasized that the new initiative represents a “practical solution” — a fixed-price, time-bound projectdesigned to minimize risks to public finances while delivering vessels on schedule.
Port Infrastructure Upgrades Required
Because the new ships will be larger than the existing fleet, the plan will require significant port terminal upgrades in Wellington and Picton.
Earlier this year, the government established a new agency to oversee the ferry replacement program and related port modernization following the cancellation of iReX.
End of an Era for KiwiRail’s Old Fleet
Operator KiwiRail, which runs the Interislander service, has already begun phasing out its older vessels. In August 2024, the company retired the Aratere, a 26-year-old ferry used primarily for rail transport.
Last week, KiwiRail confirmed the sale of the Aratere for recycling. The ship will be sent via an intermediary to a ship-recycling yard in India.
Interislander CEO Duncan Roy stated that the company conducted a full audit and site inspection to ensure environmental compliance before the sale.
“The Aratere is unsuitable for most operators due to its age and the need for costly modernization or specialized port infrastructure. We’re reusing onboard equipment, furniture, and materials where possible or donating them to local organizations,” Roy said.
