KiwiRail Welcomes Ferry Announcement

The Government’s decision to procure brand-new rail-enabled Interislander ferries is great news for the public, international visitors and the entire freight market wanting to include rail in their supply chains, says KiwiRail Chief Executive Peter Reidy.

“As New Zealand’s only company moving freight by rail, KiwiRail is particularly happy to see that specifications are for rail-enabled ferries which will ensure the lowest operating cost for rail freight and increased capacity for road transport operators.

KiwiRail also welcomes today’s announcement that planning for the port infrastructure in Picton and Wellington is underway and that the ferries will enter service in 2029.

“With its decision to purchase brand new ships, the Government has opted to invest in long-term safety and reliability for New Zealand, meeting international obligations for safe return to port, and more rigorous environmental standards.

“In 2024, we did an international search for any suitable second-hand ships to buy or lease that would meet modern safety and environmental standards. None were available.

“These days, new ships and ferries are built to comply with international maritime regulations for ‘safe return to port’, requiring vessels to be able to maintain essential systems to safely return passengers and crew to port without evacuation.

New ferries will also meet requirements under the International Convention for the Prevention of Pollution from Ships, covering air pollution and emissions, which are becoming more stringent over time.

Two new, identical ships will improve Interislander’s efficiency by reducing ongoing maintenance costs and, for the first time, allow KiwiRail to use a single standardised asset management, training and operational approach.

“The decision to go with rail-enabled ferries gives our freight customers the confidence to include rail in their investment decisions enabling them to release capital to higher earning alternatives.

“Until the new ships arrive, Interislander will continue providing a reliable and safe Cook Strait service with our current ferries. They are the workhorses of Cook Strait, together carrying more than 620,000 passengers, 230,000 cars and 73,000 commercial vehicles a year, along with rail freight.

Across the busy summer peak from December 2024 to the end of February 2025 Interislander’s reliability was 100 per cent, excluding weather events. So far in this financial year, Interislander’s reliability has been around 98 per cent.

“We look forward to working with the Government and Ferry Holdings Ltd to support the procurement process and to ensure the smooth introduction of the new ferries to service on Cook Strait for our customers and for New Zealand.”

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