Full video: Peters makes Interislander ferries announcement

He was expected to speak to media at 3.30pm from CentrePort in Wellington. Source: 1News (Source: Other)

The Government says two new Interislander ferries and port upgrades will cost $1.86 billion, on top of the $671m spent on the cancelled iReX project.

Rail Minister Winston Peters called the programme a “no-nonsense” solution, with the ships due to enter service in 2029. He confirmed he will travel to Guangzhou next week with Ferry Holdings officials to mark the agreement with Chinese shipbuilder Guangzhou Shipyard International (GSI).

Each ferry will be 200m long, with road and rail decks, space for 1500 passengers, and 2.4km of lanes for vehicles and rail wagons. Port upgrades include new wharves in Picton, an extended wharf in Wellington, and a Dublin St overbridge.

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