Government to procure two new ferries for North-South Island route.
The New Zealand Government is establishing a company to acquire two new ferries, ensuring a safe and reliable connection between the North and South Islands. The existing ferries are expected to reach the end of their operating lives by 2029.
Finance Minister Nicola Willis stated that the expected cost of the project remains commercially confidential until procurement and negotiations for landside infrastructure have been completed. However, a funding envelope has been established with costs anticipated to be lower than those associated with Project iRex.
Minister for Rail Winston Peters invited the private sector to submit alternative proposals during the first stage of the procurement process, aiming to ensure no good ideas are overlooked. The company will undertake a procurement process and support officials in working with stakeholders to advance landside development planning.
The new limited liability company, listed in Schedule 4A of the Public Finance Act 1989, will be owned by the Minister for Rail and Ministers of Finance and Transport. Final decisions on ferry procurement are expected to be made after assessing alternative proposals received during the procurement process.