Ferry Holdings Confirms Port Upgrade Agreements Ahead of 2029 Vessel Arrival

In a significant development for New Zealand’s inter-island transport infrastructure, Ferry Holdings has reached agreement with CentrePort, Port Marlborough, and KiwiRail on the scope of major marine and port infrastructure upgrades. Rail Minister Winston Peters announced the milestone, calling it a return to a disciplined, cost-effective approach after the failed iReX project.

The agreements define the key infrastructure to be completed by 2029, ahead of the arrival of two new state-of-the-art ferries. These upgrades are designed to ensure long-term operational efficiency and taxpayer value, while minimizing excessive expenditure and disruption to existing systems.

A Return to Fundamentals After iReX Misstep

The government’s renewed direction comes in stark contrast to the now-abandoned iReX (Inter-Island Resilient Connection) project, which was scrapped due to uncontrolled cost escalation and mismanagement. Minister Peters praised the new approach:

“This is not our first regatta. We are applying no-nonsense infrastructure discipline that was lacking in 2020. This will save the taxpayer billions,” said Peters.

By reverting to a low-cost, practical scope, the government intends to focus spending on essential assets while avoiding unnecessary and expensive overhauls.

Key Infrastructure Plans: Wellington and Picton The agreements lay out a clear and conservative strategy for both Wellington and Picton ports. The overarching philosophy is reuse, reinforce, and streamline, with major components including:

Wellington:

• Minimal extension of the existing wharf to accommodate larger ferries.

• Re-use of passenger and commercial vehicle terminals, reducing the need for costly rebuilds.

• Re-use of the existing railyard infrastructure, avoiding the major regrading and configuration changes previously proposed under iReX.

• New linkspan and connecting infrastructure, ensuring modern, resilient ship-to-shore operations.

Picton:

• Construction of a new wharf to support the new ferry class.

• New linkspan and safe shore connection systems.

• Reuse of existing terminals and rail yard, preserving cost-effective functionality.

• Relocation and reuse of the passenger walkway to adapt to new operational requirements.

• Construction of a new overbridge at Dublin Street, finally resolving the long-standing traffic disruption caused by freight trains and separating road and rail routes for improved safety and efficiency.

Financial Agreements Still Pending

While the scope of physical infrastructure is now agreed upon, final commercial and investment agreements between Ferry Holdings and the other entities are due to be finalized later in 2025. These contracts will clarify funding responsibilities and other critical financial terms.

Statements of Intent and Performance Expectations Released

In parallel with the infrastructure announcement, Ferry Holdings has published its first Statement of Intent (SOI) for 2025–2029 and its Statement of Performance Expectations (SPE) for the 2025–2026 financial year.

• The SOI outlines the strategic plan over four years, focusing on cost control, schedule adherence, and ship procurement.

• The SPE provides detailed operational targets, including key milestones in design, tender, and construction phases.

These documents are now publicly accessible via ferryholdings.co.nz.

Ship Procurement Process Underway

While infrastructure planning progresses, Ferry Holdings is concurrently managing a closed ship procurement tender involving six global shipyards. The process remains competitive, with tenders being evaluated on both price and quality.

“All six shipyards have shown strong engagement,” confirmed a Ferry Holdings spokesperson.

A shortlist will be finalized following comprehensive assessment, with a contract award expected later in 2025 upon review by shareholding Ministers.

Long-Term Vision for Resilient Ferry Transport

With this disciplined approach, the Government aims to ensure that New Zealand’s inter-island ferry system is both future-proof and financially sustainable. The two new ferries, along with upgraded marine infrastructure, are expected to serve for the next 30 years, enhancing connectivity between the North and South Islands.

Minister Peters concluded:

“The teams at Ferry Holdings, CentrePort, Port Marlborough and KiwiRail are doing an outstanding job in the service of the taxpayer.”

This new phase in the inter-island ferry upgrade project marks a return to sound infrastructure planning—focused on functionality, fiscal responsibility, and timely delivery. With agreements in place and ships on the horizon, New Zealand is steering confidently toward a more reliable and efficient maritime future.