The Government is promising to deliver two new ferries by Christmas 2029. Photo / Mark Mitchell
The Government is promising to deliver two new ferries by Christmas 2029. Photo / Mark Mitchell
The Government considered contracting with private Cook Strait ferry company Bluebridge in its search for new ferries to replace the current Interislander fleet, which are proposed to be rolled out in February and October 2029.
In late March, Minister for Rail Winston Peters announced plans for two new ferries totake the spots of the KiwiRail-operated ships by Christmas 2029. More details of the exact timing can now be revealed through Treasury documents seen by shipbrokers and ministers.
Just weeks before the big announcement, a Treasury report sent to Peters, Minister of Finance Nicola Willis and Transport Minister Chris Bishop laid out potential alternative plans. It included contracting with Bluebridge “to provide increased capacity to replace Interislander vessels as they reach end of life“.
The report also suggested a “contracted monopoly” option could include fare protections and controls, and claimed “efficiency benefits” could arise from the “consolidation of services”.
Treasury officials also floated the idea of a commercial competitor to Bluebridge as another option that “could be worth further consideration”, as Treasury noted several credible operators indicated they’d be willing to set up as a competitor.
Both alternative options were ruled out, as they were deemed unable to meet the deadline for a case to be delivered by the end of March 2025.
In a statement, Peters’ office said officials considered all manner of options and added it did not proceed with contracting Bluebridge.
“In fact, officials did not recommend this‚” the minister’s office said.
The Treasury report, delivered to ministers, floated the idea of contracting with private operator Bluebridge.
The Government has shortlisted six shipbuilders, who aim to compete on price and quality; its wishlist consists of ships around 200m long, containing road and rail decks and able to hold a minimum of 1,600 people.
Replacement ferries are proposed to take over the current fleet of three, which is shrinking to two after the Aratere’s last journey, set for August.
A worldwide search for a new ferry operator kicked off after the Government scrapped the mega-ferries project, citing concerns regarding numerous cost blowouts linked to portside infrastructure upgrades. In late 2024, Peters was formally given the title of Minister for Rail, giving him oversight around KiwiRail and Cook Strait ferry-related decisions.
A shipyard is expected to be selected this year, with the minister’s office previously confirming expressions of interest from South Korea and Finland.
Treasury underwent a market process for three-and-a-half weeks to seek alternative ideas for ferry service delivery, as instructed by the Government. The Treasury report, released publicly, confirms the agency met with 15 parties as part of the process, and received 25 written submissions, all with “a high level of interest”.
Also mentioned in the report given to ministers was the January 2023 Kaitaki incident, in which the Interislander ferry lost power in Cook Strait, drifting towards the shore without power for more than an hour.
Treasury officials added if a ship was “Safe Return to Port”-compliant and faced a similar incident, it would not have lost all power, and “would not have posed the same level of risk to the ship occupants”. After this finding, KiwiRail’s board decided to only purchase ships compliant with that specification.
Officials noted second-hand ships built prior to 2010 that do not meet the design standards can operate in New Zealand if they are Maritime New Zealand-compliant.
The Treasury report contained numerous considerations, given to the market, around financial stability.
Key evaluation criteria were given out to the market, with expectations for ferries that have appropriate capacity, capability and experience, financing and the “ability to manage risks” associated with transitioning to new ferry arrangements.
A briefing to shipbrokers, also uploaded by Treasury, reiterated the importance of value for money on a “whole-of-life basis”, alongside being able to manage demand and to “support a reduction in carbon emissions”.
A market assessment, proposing dates for the new ferries to be delivered, was provided in briefing notes to shipbrokers.
The briefing also showed options for delivery times, including confirmation of the proposed timeframes for the new ferries. The first new ship is planned to be delivered in February 2029 and the second later that year, in October.
When asked for comment, Ferry Holdings confirmed this was correct in a statement.
Asked if it could guarantee both ferries will be delivered in 2029, as shipyards could propose alternative dates if they were unable to meet the proposal, Ferry Holdings was unable to commit to the dates.
“We are currently involved in the close tender [sic] procurement process for the two ferries and therefore not able to comment on this question.”
Labour’s transport spokesman Tangi Utikere was not impressed, saying the Government had “botched the ferry deal” and “scrambled something together”.
“The mere consideration of privatising ferries for a period of time is a disturbing one - it shows how desperate they were to fix the mess.“
Azaria Howell is a multimedia reporter working from Parliament’s press gallery. She joined NZME in 2022 and became a Newstalk ZB political reporter in late 2024, with a keen interest in public service agency reform and government spending.
