Rt Hon Winston Peters
Minister for Rail

Rail Minister Winston Peters says the Government has started the world-wide market engagement to buy two new medium-sized ferries to replace the Interislander fleet.

“The Government will immediately engage shipyards internationally, identifying those with the capability, capacity and interest to deliver new ferries by 2029,” says Mr Peters.

“This will narrow the list of potential ship builders to those able to strike a deal, ensuring no time is wasted when we issue the ship specifications later this year.”

At the same time, the Government is opening the process for eligible parties to put forward ideas for alternative procurement options to deliver ferry services.

“We announced in December that any better ideas than direct procurement of new ferries and port agreements for the enabling infrastructure will be heard. Interested parties should put their best foot forward now,” says Mr Peters.

Mr Peters says ideas for alternative procurement options will need to demonstrate:

• the ability to deliver ferries in 2029 with appropriate freight and passenger capacity and that meet certain specified standards
• the ability to provide confidence that any landside development necessary will support new ferries operating in 2029
• capability and experience in the operation, financing and/or investment in maritime transport infrastructure
• the ability to manage risks associated with the transition from current ferry operations to new arrangements
• value for money on a whole of life basis, delivering an annual economic return, at less cost than a Government-led procurement

Details on how maritime transport operators or infrastructure investors can register interest in providing ideas and receive further information are available on the Government Electronic Tenders Service (GETS) website (www.gets.govt.nz).

The deadline for the written submission of ideas via GETS is 28 February 2025.

Notes:

• In March 2025, Ministers will take a paper to Cabinet outlining which shipyards expressed interest in building new ships and have the capability and capacity to deliver ships by 2029.
• At the same time, Cabinet will also receive an update on the assessment of alternative proposals and take decisions on whether to proceed with any ideas presented.
• Cabinet will then take decisions on the overall approach to procurement, for implementation by Ferry Holdings Limited once incorporated. The appointment of directors to incorporate this company is underway.
• BRS Shipbrokers, an internationally leading brokerage firm, has been engaged by the Treasury to the end of March 2025 to contact shipyards and identify interested parties.

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