A port infrastructure upgrade in Picton to accommodate new ferries will include building a Dublin St overbridge, Rail Minister Winston Peters confirmed on Tuesday.
He was in the port town to announce that Ferry Holdings has reached an agreement with CentrePort, Port Marlborough and KiwiRail on the core infrastructure scope for the new Interislander ferries, covering the physical work and equipment to be delivered by 2029.
The Dublin St overbridge was a feature of the previous ferry project iReX, and work had already started on the site when the project was scrapped at the end of 2023. The intersection had to be put back to normal in 2024 to restore the road connection to central Picton.
On Tuesday, Peters said the overbridge was necessary to rid the town of the blocked streets it would experience when freight-laden trains arrived at the port.
“This road takes 33% of the passengers from both ferry operators, but it’s blocked when long trains arrive in Picton or shunting movements take place in the in the rail yard,” he said.
“This impacts tourists visiting New Zealand and locals alike.
“Trains will get longer and busier in the future, so we must address this problem.”
Peters said the overbridge, which would be funded by KiwiRail, would be ready by 2029, and would be built with minimal disruption to the community.
“The teams at Ferry Holdings, CentrePort, Port Marlborough and KiwiRail are doing an outstanding job in the service of the taxpayer, and we thank them for it.”
Mayor Nadine Taylor welcomed the announcement as the overbridge had been requested by the community since the scrapped iReX project.
“I’m feeling really pleased and really relieved. It’s great to have it confirmed, both for Picton and for the community,” Taylor said.
“We always knew it was needed with the new ferries … and it’s wonderful to have the minister come down here on site to Picton and confirm to the council and to the community that it is going to happen.”

Congestion was a critical issue, both for the general public but also emergency services, she said.
“You cannot have a town where you can’t have emergency services easily access both sides of the town.
“The overbridge will take away all of that risk.
“It really is a fantastic future-proofing piece of infrastructure for the town of Picton.”
Taylor was at Peters’ announcement at the Marlborough Port offices on Tuesday, along with Port Marlborough chairperson Warren McNabb, and Ferry Holdings chairperson Chris Mackenzie.
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Peters said port and KiwiRail agreements would be entered later this year to confirm the investment splits between Ferry Holdings and each other company and other commercial terms.
“This is not our first regatta, as this no-nonsense infrastructure focus is what was supposed to happen in 2020, until poor management and a lack of oversight allowed iReX to blow out,” he said.
“We will save the taxpayer billions through our disciplined approach.
“The agreements entered into effectively mean the ports and KiwiRail are in, boots and all, with Cabinet’s preferred low-cost option.”

Another major component of the Picton infrastructure included the reuse of passenger and commercial vehicle facilities, as well as the terminal building.
The Interislander’s current terminal building, built as a temporary option after the old terminal building was demolished in 2024, would become the permanent terminal.
“iReX was going to build a Taj Mahal terminal building here in Picton, and a Sydney Opera House in Wellington,” Peters said.
“We are keeping [the] existing buildings in contrast, as all passengers need is a warm, dry spot to wait with their luggage, especially when the vast majority wait in their own vehicle, not the building.”
Peters said the pre-fab structure would serve as the terminal building for the next 60 years.
“A whole lot of people, more practical, more clever, more smart, who took this country to be number one in the world … decided it was the best option, and I agree with them.”
Peters said there could need to be additional works performed on the terminal building to make it permanent.
By Kira Carrington, Local Democracy Reporter
LDR is local body journalism co-funded by RNZ and NZ On Air.