The Government says it has chosen its preferred supplier for two new ferries for the Cook Strait, due to arrive in 2029.
Rail Minister Winston Peters said that Ferry Holdings, the Government-established company to lead the procurement and delivery of the new ferries, had narrowed down its shortlist of six shipyards to build the vessels to just one.
The shipyard would be named once the contracts are signed.
Peters said a letter of intent had been signed with the ship builder to begin the final stage of technical negotiations.
“Nobody can accuse us of a lack of pace when Ferry Holdings is delivering a multi-year procurement process within 9 months,” Peters said.
“The letter of intent is a key milestone in any procurement process as it means the two parties are on the same page for the deal and can now iron out the technical points before signing later this year.”
Peters said the supplier and Ferry Holdings had agreed to a fixed price, the deadline of 2029, and full delivery of its specifications.
The new ferries would be 200 metres long with road and rail decks. They would have room for 1500 passengers, and 2.4km of lanes for trucks, cars and 40 rail wagons aboard each ship.
Alongside the new ships, significant infrastructure upgrades were due to take place. In Picton, new wharves and linkspans would be built, while in Wellington, the existing wharf would be extended.
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An overbridge would also be built at Dublin St in Picton, which would separate road traffic from freight trains.
In August, KiwiRail reached a settlement with South Korean shipyard Hyundai Mipo Dockyard (HMD) following the coalition Government’s cancellation of the iReX ferry project.
The Government had accused the previous Labour government of blowing out the cost, and claimed they could do it for cheaper.
The entire endeavour ended up costing $671 million, with no boats to show for it.
Interislander ferry Aratere was retired recently to allow for work in Picton.
