Key Takeaways
- The government has announced that the two new Cook Strait rail‑enabled ferries will be named Kupe and Cook, with service slated for 2029.
- KiwiRail will operate the vessels and pay commercial port fees to CentrePort, Port Marlborough and Ferry Holdings.
- The ferries are being built by Guangzhou Shipyard in China; the previous iReX project was cancelled at a cost of $671 million, with the government arguing the original plan would have ballooned to roughly $3 billion.
- Significant infrastructure investments are pledged: CentrePort $100 million, Port Marlborough $110 million, and Ferry Holdings $373 million for Picton redevelopments, with ownership structures varying between the ports.
- The arrangement will be reviewed in 2039, and KiwiRail is required to build a reserve to enable a direct purchase of replacement ferries in 2059.
Background and Announcement
Minister for Rail Winston Peters unveiled the names of the two new Cook Strait ferries during a stakeholder briefing at Parliament. He declared that the vessels would be called Kupe and Cook, describing the choices as “proper names, historic names, New Zealand names.” Peters framed the naming as a look to the future while honoring the nation’s maritime heritage, and he anticipated criticism of the name Cook from those he labelled “snivelling wokesters” who view the explorer as a symbol of colonisation. He asserted that a mature country does not erase its past to appease fleeting political trends. When asked who devised the names, Peters replied simply, “history did.”
Operational Arrangement and KiwiRail’s Role
Peters confirmed that KiwiRail will operate the new ferries once they arrive in 2029 and will pay commercial port fees to the three managing entities: CentrePort in Wellington, Port Marlborough in Picton, and Ferry Holdings. He highlighted KiwiRail’s long pedigree, noting that in its various incarnations—from New Zealand Railways to TranzRail, Toll, and now KiwiRail—the agency has overseen the Interislander service for 64 years. “Experience counts,” Peters said, reinforcing the argument that an experienced operator is the safest choice for the new vessels.
Funding and Port Contributions
The government’s procurement package includes substantial financial commitments from the port companies. CentrePort will contribute $100 million toward Wellington wharf upgrades, while Port Marlborough will invest $110 million in Picton infrastructure. Ferry Holdings is earmarked to provide $373 million for the Picton redevelopments. These sums are fixed in the contracts, whereas other cost elements remain provisional long‑range estimates that will be refined as target outturn prices are settled. In Wellington, the assets built by CentrePort will remain under its ownership, with KiwiRail retaining a joint‑ownership stake on shared facilities. In Picton, the new wharf will be owned 50‑50 by Ferry Holdings and Port Marlborough, despite the Crown’s larger financial contribution, a structure intended to preserve operational continuity for the ports.
Infrastructure Contractors and Timeline
Construction of the landside works has been divided between two firms: Brian Perry Civil is responsible for the Wellington side, while HEB Construction will handle the Picton works. The ferries themselves are scheduled for delivery in 2029, after which a ten‑year review period is planned. The arrangement will be examined in 2039, and KiwiRail is required to accumulate a reserve fund that would allow it to purchase replacement ferries outright by 2059, ensuring long‑term fleet sustainability without relying on repeated government procurements.
Cancellation of the iReX Project
Upon taking office, the coalition government terminated the previous administration’s iReX initiative, which had envisaged a different set of ferries. Peters disclosed that the cancellation incurred $671 million in sunk costs, including fees paid to the originally contracted Hyundai‑Mipo shipyard. He argued that, had iReX proceeded, the project’s expenses would have likely escalated to around $3 billion, justifying the decision to scrap it. Peters framed the move as fiscally responsible: “Build what is needed, not what is desired. Do what works, not what dazzles. Trust the experts, not the yes‑men.”
Political Reaction and Criticism
Labour’s transport spokesperson, Tangi Utikere, criticised the announcement as a distraction, claiming the government had already squandered three years and hundreds of millions of dollars while delaying essential ferry replacement. Utikere characterised the naming event as a “sideshow” from an administration more adept at holding press conferences than delivering concrete infrastructure projects. The critique underscores the tension between the government’s narrative of prudent spending and the opposition’s view that the delay undermines national resilience.
Industry Perspectives on Costs and Ownership
Ferry Holdings chief executive Sandip Ranchhod clarified that many of the financial figures cited in the contracts are based on long‑range estimates and will be adjusted as target outturn prices become fixed. He emphasized that the port‑company contributions—$100 million, $110 million, and $373 million—are set figures. Ranchhod explained the ownership nuance: in Wellington, CentrePort retains title to the assets it constructs, with KiwiRail sharing joint use; in Picton, the forthcoming wharf will be split evenly between Ferry Holdings and Port Marlborough, ensuring both parties benefit from any future revenue streams, such as a potential shift of the Bluebridge service to the western side.
Views from Port Authorities
CentrePort’s chief executive, Anthony Delaney, said he was “not at all” disappointed that Wellington did not secure the same co‑ownership arrangement achieved in Picton, noting that CentrePort already operates under similar joint‑ownership models with KiwiRail on existing assets and would continue business as usual. He, along with chair Lachie Johnstone, Port Marlborough CEO Rhys Welbourn and Marlborough mayor Nadine Taylor, learned of the ferries’ names only when Peters made the public announcement. Ferry Holdings chair Chris Mackenzie reiterated that the decision to keep KiwiRail as a ship operator—rather than taking outright ownership of the vessels—was deemed more efficient by the ministers, a stance that aligns with the goal of leveraging existing operational expertise.
Conclusion
The announcement of the Kupe and Cook ferries marks a pivotal step in renewing New Zealand’s Cook Strait link, balancing historical symbolism with pragmatic fiscal and operational considerations. While the government stresses disciplined spending and reliance on seasoned operators like KiwiRail, critics warn that the postponement of vessel delivery prolongs vulnerability in the nation’s transport resilience. The coming years will test whether the chosen procurement, funding, and governance model can deliver reliable, modern ferries on schedule while accommodating the interests of ports, operators, and the public.