The Government has locked in a Chinese state-backed shipbuilder to construct two new Cook Strait ferries, Rail Minister Winston Peters has announced.
Peters said this afternoon that Guangzhou Shipyard International (GSI), a Shanghai and Hong Kong Stock Exchange-listed enterprise, would complete the vessels by 2029.
But final details on the agreements remain under wraps as the Government-owned Ferry Holdings Limited was still negotiating with GSI, along with port agreements with Port Marlborough and Wellington's Centreport.
GSI was the "largest modern integrated shipbuilding enterprise in Southern China, founded in 1954," Peters boasted in his media release.
"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 programme," he said.
"As we said in early September, we have secured major components, including a fixed price, completion in 2029, and full delivery of our ship specifications for 200-metre-long ferries with road and rail decks, and room for 1500 passengers each.
Peters said he would make further announcements on the programme this year.
"We intend to make an announcement before the end of this year detailing our agreements and how we have saved the taxpayer billions by cancelling project iReX and returning to the no-nonsense solution we started in May 2020."
The fact that the Government had a preferred supplier for new ferries was announced last month, but the identity of that shipbuilder was not publicly known until today.
“Nobody can accuse us of a lack of pace when Ferry Holdings is delivering a multi-year procurement process within 9 months,” Peters said in September.
The iRex scheme, launched by a Labour-led government and cancelled by a National-led one, cost $671 million. (Source: 1News)
At the time, he 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 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.
An overbridge would also be built at Dublin St in Picton, which would separate road traffic from freight trains, Peters announced last month.
The agreements come ahead of the arrival of replacement ferries through the Strait in 2029. (Source: 1News)
In August, KiwiRail reached a settlement with South Korean shipyard Hyundai Mipo Dockyard following the coalition'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.
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