Two new Cook Strait ferries to arrive in 2029

Public Policy / news

Rail Minister Winston Peters announces two new Cook Strait ferries, called 'Kupe' and 'Cook', will arrive in 2029 and be operated by KiwiRail

17th Jul 26, 1:08pm by Anna Whyte

The new Cook Strait ferry model - Supplied: Ferry Holdings Limited

Two new Cook Strait ferries will be operated by KiwiRail, and named Kupe and Cook, Rail Minister Winston Peters says.

The announcement, made on Friday, follows a lengthy, turbulent period for the new ferries, with negotiations, changes and cost blow outs going back years and over successive governments.

Ship construction was scheduled to start in 2027 and the ferries will arrive in 2029. They will be operated by KiwiRail for their 30-year lifespan, with the arrangement reviewed in 2039.

“KiwiRail has run the Interislander since its inception in 1962, and in our book, experience counts," Peters said.

"This decision keeps the rail freight network and ferry operation working as one system, supporting the critical domestic freight route between Auckland and Christchurch."

Peters said KiwiRail had demonstrated "improved performance, with Interislander reliability now at 98% and KiwiRail is poised, pending final audit, to achieve its $160 million earnings target to 30 June 2026".

"KiwiRail will pay commercially priced port fees to CentrePort, Port Marlborough and Ferry Holdings. CentrePort and Port Marlborough will earn a reasonable return on their $100 million and $110 million contributions respectively.

“Because more complex new infrastructure is being built in Picton with $373 million to be paid by Ferry Holdings, a special purpose vehicle will be established to co-own assets between Port Marlborough and Ferry Holdings."

He said the Government has reconfirmed the "taxpayer contribution to the programme will be no more than $1.7 billion, as announced in November 2025 alongside confirmation of a fixed price contract with Guangzhou Shipyard International".

On the names, Peters said: "Kupe and Cook reflect New Zealand as it actually is: a country shaped by the sea, by settlement, by risk, by enterprise, and by people who crossed dangerous waters in search of a future."

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20 Comments

by Foxglove | 17th Jul 26, 1:22pm 1784251359

I name these ships Kupe and Cook. May god bless them and all that sail in them. So far so good?

by JimboJones | 17th Jul 26, 6:26pm 1784269617

Average kiwi doesn't care that we are getting a significantly inferior outcome 3 years late at what is probably a similar total cost. As long as the names aren't Maori.

by rolande | 17th Jul 26, 1:48pm 1784252907

Winnie missed a trick. He should have "gifted" the names. Then no-one would be able to complain or change them.

by The Person | 17th Jul 26, 2:10pm 1784254259

When combining the $671 million

in wasted iReX exit costs, the $1.92 billion

updated replacement budget, and the hundreds of millions required to keep the old ships running through 2029, critics and independent analyses place the true cost of the entire saga well beyond $2.6 billion

by The Person | 17th Jul 26, 2:30pm 1784255422

Maintenance requirements will have the Interislander service reduced to one ship for more than 100 days in 2027, a KiwiRail briefing shows.

Between now and when the new Interislander ferries arrive in 2029, the Cook Strait service is expected to run a single-ship schedule for 259 days.

BusinessDesk reported on Wednesday on the freight sector’s concern at reduced sailings and supply chain disruption risk, as Interislander operator KiwiRail enters a planned winter maintenance period from July to September. A more extensive reduced schedule is expected for 2027

Do they include the economic impact from these shutdowns in their costings?

by KKNZ2025 | 17th Jul 26, 3:33pm 1784259220

Did NZR / Labour include the billion + for terminal reconstructions to cater for the oversize original ferrys (that couldn't even go through Tory channel without a special dispensation from Maritime NZ)?

Nope.

by The Person | 17th Jul 26, 3:42pm 1784259773

yes they did, the terminal reconstruction and future / earthquake proofing was most of the cost. The ferries themselves were pretty cheap.

by The_Golem | 17th Jul 26, 4:01pm 1784260878

But unfortunately unusable without the infrastructure development to support their greater size.

The tale really does need to be told of the struggle between the port, NZ Rail, the Wellington council, assorted transport authorities and all the other local groups that led to a planned terminal near downtown that was going to be monstrously disruptive and expensive, and not in the best place for geology or access.

And the logical place for the South Island terminal is still Clifford bay becasue of the overall efficiency and it might just get off the slipway this time - but with private funding.

https://www.rnz.co.nz/news/national/584395/an-inter-island-ferry-route-…;

This type of large infrastructure design really does need to be taken away from local government.

by The Person | 17th Jul 26, 4:14pm 1784261670

yes if your are gonna build out a whole new south island terminal, Clifford Bay. But Joyce did a good look at that and ruled it out

by Foxglove | 17th Jul 26, 4:27pm 1784262463

For a modern vessel, and cross over sailings to arrive in the morning Wellington - Lyttelton would not lengthen freight transit come delivery times that much and take a lot of pressure of that suspect highway down the SI east coast. Tourism could avail smaller vessels as needed still through Picton.

by blobbles | 17th Jul 26, 4:32pm 1784262742

I agree, I think a better solution would have been to have a Wellington - Lyttleton freight focused (with lesser family friendly facilities, but still car capable) and a Wellington - Picton tourist version similar to current. But we don't have endless money, I suppose.

by KKNZ2025 | 17th Jul 26, 4:22pm 1784262165

No, Labour did not include it in their budget, Grant Robertson refused to sign NZRs revision for ~6m & gave the hospital pass to the incoming govt.

by The Person | 17th Jul 26, 5:32pm 1784266379

Well yes and no. Labour did include a billion in their budget, but no they didn't approve a further billion

3 June 2021 DBC confirms Board’s preference for two large rail-enabled ferries. Major Transaction approval required in accordance with the Companies Act. KiwiRail seeks a response by the end of June 2021, as a Letter of Intent with Hyundai Mipo Dockyard (HMD), which contains a fixed-price offer for the ships, expires on this date. The total project cost now forecast at $1.45b.

28 June 2021 Shareholding Ministers approve the Major Transaction, and inform KiwiRail of the tagged contingency

https://www.treasury.govt.nz/sites/default/files/2024-05/project-irex-4…

by The Person | 17th Jul 26, 2:15pm 1784254514

Any specs on these new ferries? The Hyundai ones we cancelled were hybrid with 40% less emissions = 40% less fuel consumption, and would have arrived this year meaning lower operating costs already.

by blobbles | 17th Jul 26, 4:35pm 1784262928

Less emissions is woke. It will be more emissions, to annoy Peters strawman wokesters, an imagined political segment which Peters likes to trot out as anyone against his plans. A catch call of an aged, angry, weakening mind... probably not the people that are the best leaders.

by blobbles | 17th Jul 26, 4:29pm 1784262557

Geez the funding tune has changed:

He said the Government has reconfirmed the "taxpayer contribution to the programme will be no more than $1.7 billion, as announced in November 2025 alongside confirmation of a fixed price contract with Guangzhou Shipyard International".

Wasn't it going to be total cost was this? Now its "total taxpayer contribution", which means Kiwirail can get a loan if its going to cost more... which is backed by the taxpayer being owners, right?

What was the original cost of the Hyandai ferries? $551m? Geez, even if this was renegotiated to a more likely $800m for bigger/better ones, we would have them by now. Sure we would have also had to upgrade port infra, but that's just making the whole thing more resilient to earthquakes which are inevitable if you haven't noticed.

by The Person | 17th Jul 26, 5:35pm 1784266544

The port costs have been taken out of the project, ports/councils to build them, SPV to fund picton upgrades. Kiwirail to payback port upgrade costs through port fees. It's all smoke and mirrors to pretend they are saving money.

by Let me be Frank | 17th Jul 26, 4:54pm 1784264049

Hardly worth the effort....we have 2 ships coming (we already knew) ...late and they now have names.

I guess it gets the NZ First brand into the news cycle....meh.

by ghytresd | 17th Jul 26, 11:50pm 1784289045

Odd to name a vessel so far from commissioning.. must be an election coming up

by KH | 18th Jul 26, 10:10pm 1784369415

Great names.