Marlborough District Council Mayor, Nadine Taylor, has welcomed today’s announcement by Minister for Rail, Winston Peters, confirming a $596 million fixed price contract between Ferry Holdings and experienced shipbuilder Guangzhou Shipyard International for two new ferries to serve road and rail for Cook Strait by 2029.
Mayor Taylor said the update “provided all involved with the clarity and certainty required for New Zealand, and for the port of Waitohi Picton. It is an important step forward.
“Marlborough District Council, working in support of our wholly owned subsidiary Port Marlborough New Zealand, looks forward to a bright future for the ferries in Picton. Marlborough has been the key South Island link in the north-south connection for generations and we look forward to Waitohi Picton continuing that vital role,” she said.
“In these times of economic challenge, I would also like to congratulate Minister Peters and Government on charting a prudent course to achieve the best financial outcome for taxpayers, including the commitment to “no-nonsense infrastructure” in both Waitohi Picton and Wellington.”
Mr Peters said the total programme will cost less than $2 billion, with the taxpayer contribution coming in under the $1.7 billion allocated at the start of this year.
“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,” he said.
“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.”
The Minister extended his thanks to the Ferry Holdings board and management team and the pragmatists at CentrePort, Port Marlborough and KiwiRail “who heard the clarion call for fiscal discipline to secure the Strait”.
“Ferry Holdings will be in the driving seat for the infrastructure, ably and contractually backed by CentrePort, Port Marlborough and KiwiRail, and accommodations will be made to minimise disruption to Interislander and Bluebridge,” he said.
“Next week we will travel to Guangzhou with the Ferry Holdings Chair and Ships Programme Director to acknowledge the significant agreement, not just between the shipyard and Ferry Holdings but also as a contribution to economic relations with China.”
Mayor Taylor said that once commercial details are agreed between Ferry Holdings Limited and Port Marlborough, the Council will consult with the community about the on-lending requirement to Port Marlborough for its portion of the port infrastructure costs.
In Waitohi Picton, the redevelopment project will deliver the infrastructure required to support the new vessels and to maintain continuity for all customers during construction.
This includes a new wharf, a new linkspan, upgrades to terminal connections, and the relocation and reuse of the existing passenger walkway. KiwiRail and NZTA are also progressing the new Dublin Street overbridge to improve safety and efficiency by separating road and rail movements.
Port Marlborough’s project team is currently staging works to maintain business continuity across the port. This includes enabling works and operational planning to ensure customers remain supported through each phase.
“The ministerial announcement today on funding and procurement gives us a clear pathway forward. Our priority is to deliver the infrastructure for the next generation of Interislander vessels while keeping New Zealand’s supply chain moving smoothly. Cook Strait ferries are a critical link for the country, and Port Marlborough is ready,” Port Marlborough Chief Executive, Rhys Welbourn said.
“As the South Island facilitator of New Zealand’s State Highway and main rail connection, we bring proven operational expertise, a complete and modern towage fleet, and a project team with deep engineering and infrastructure experience.
“Port Marlborough has managed ferry and cruise activity in the Sounds for many years, and that experience positions us well for what comes next. We are ready to progress and support the next stage of programme delivery,” Mr Welbourn said.
