New Zealand Selects Chinese Yard to Build Ferries for Interisland Service
New Zealand authorities announced the selection of a Chinese shipbuilder for the much-troubled and sometimes controversial project to build new interisland ferries. The project has become politically charged with a new promise of a “no-nonsense solution.”
Rail Minister Winston Peters announced that they have selected China’s Guangzhou Shipyard International (GSI) to build two new ferries. He said that contract negotiations are underway, as well as new port agreements. He reports that they intend to finalize all the contracts and announce the details before the end of the year.
“We want the best deal possible for New Zealand taxpayers, and a shipbuilder of the competence, capability, and capacity of GSI underscores the high degree of confidence in our no-nonsense ferry replacement program,” said Peters. He promises to also detail how the new approach is being accelerated, but will save money for taxpayers after the government ended in 2023 a previous project.
Media reports estimate that the government has spent approximately US$380 million to date on the replacement project, which started in 2020. The original concept was later replaced with more modern, high-tech ferries, and contracts were awarded in 2021 to South Korea’s HD Hyundai, before the government terminated the project. It had to settle with the Koreans to end the prior program.
Peters says they are back to the no-nonsense solution stated in May 2020. The project will be completed, he promises, on a fixed price and a firm delivery date of 2029. The ferries will be 200 meters (656 feet) in length with road and rail decks and room for 1,500 passengers. Media reports say there will be 2.4 km of lanes for trucks and space for 40 rail cars. The plan calls for the vessels to operate crossing the Cook Strait for the next 30 years.
Earlier this year, the government established a new entity to take responsibility for the Cook Strait ferry replacement work program following the cancellation of project iReX and the building of vessels that would have required new terminals. However, the new project will also require infrastructure upgrades at the ports for the vessels, which will be larger than the current two-vessel fleet.
KiwiRail has a troubled history of operations, which they also hope to correct with the new vessels. In August, the company retired a third ferry, Aratere, that had been operating for 26 years. It was the only one of the fleet fully designed to take rail cars, but its continued operation would have interfered with the required updates for the ports.
The company said at the end of last week that it had sold the Aratere for recycling. It is going to a middleman, who will deliver it to a shipyard in India. Executive General Manager for Interislander, Duncan Roy, said the company has conducted due diligence and a physical inspection of the yard to ensure the environmental standards. He said Aratere is not suitable for most ferry operators due to its age and that it would have required significant modifications or specialized port infrastructure. KiwiRail is repurposing appliances, furniture, and other items from Aratere across its operations or donating remaining quality items.