New Zealand Gov confirms $2.3B in savings from double ferry order at Chinese yard

New Zealand’s government has saved the taxpayer billions with two new Interislander ferries from Guangzhou Shipyard International and no-nonsense infrastructure in Picton and Wellington, Rail minister Winston Peters announced on Nov. 19.

Rail minister Winston Peters said the two new ferries serving road and rail will enter Cook Strait service in 2029, thanks to a $596m fixed price contract between Ferry Holdings and shipbuilder Guangzhou Shipyard International.

GSI is the “largest modern integrated shipbuilding enterprise in Southern China, founded in 1954” and is “listed on the Hong Kong and Shanghai stock exchanges,” Peters mentioned in a previous press release.

Ferry Holdings, the ports and KiwiRail have agreed to the programme of work to be delivered by 2029.

The total programme will cost less than $2bn, the minister noted, with the taxpayer contribution coming in under the $1.7bn allocated at the start of this year.

Peters added: “Spending less than $1.7 billion means the taxpayer has saved $2.3 billion while still getting the ferries and infrastructure they want, because we have done away with the expensive consultants who hijacked the project by adding more and more infrastructure until Treasury warned the project would cost $4 billion.

“Funding spent on infrastructure will be recovered over the life of the new Interislander ferries and infrastructure through port fees paid from Interislander revenue, and Interislander will be expected to build sufficient reserves to buy new ferries again in 30 years – or put simply, structured like a normal business.”

Ferry Holdings Limited welcomed the government’s investment decisions to progress the Cook Strait Ferry Replacement Programme.

According to the company, the procurement of two new rail-enabled ferries, alongside targeted infrastructure upgrades at Wellington and Picton, reflects a collaborative commitment to modernising inter-island connectivity.

“These vessels are not just replacements, they are a generational investment in New Zealand’s maritime and rail future, built to deliver value, resilience, and sustainability for decades to come,” said Chris Mackenzie, chair of Ferry Holdings Limited.