The two rail-enabled RoPax vessels are being built by Guangzhou Shipyard International in China for Ferry Holdings, the Crown company established to procure the ships and associated infrastructure, and will replace the ageing Interislander fleet. The 200 m ships will carry 1,530 passengers and 70 crew. Construction is scheduled to begin in 2027, with delivery in 2029.

KiwiRail will operate the vessels across the 30-year life of the assets, with the arrangement to be reviewed in 2039. The operator will also be required to build a reserve enabling it to purchase replacement ferries directly in 2059. The government had previously declined to commit to full KiwiRail operation, with earlier signals pointing towards part-privatisation.

Peters said KiwiRail has run the Interislander since its inception in 1962 and that the decision keeps the rail freight network and ferry operation working as a single system supporting the Auckland–Christchurch freight route. He cited Interislander reliability at 98 per cent and said KiwiRail was positioned, pending final audit, to meet its NZD 160 million earnings target to 30 June 2026.

On the names, Peters said the ships have been legally registered with names honouring New Zealand's maritime history and the role of Cook Strait in connecting the country. KUPE refers to the Polynesian navigator held in tradition to be among the first to reach the islands, while COOK takes the name of British explorer James Cook.

On the landside, CentrePort in Wellington and Port Marlborough in Picton will contribute NZD 100 million and NZD 110 million respectively to wharf infrastructure, with Ferry Holdings putting NZD 373 million towards the Picton redevelopment. Brian Perry Civil will deliver the Wellington works and HEB Construction the Picton side. A special purpose vehicle will be established to co-own the Picton assets between Port Marlborough and Ferry Holdings. The project is now valued at NZD 1.9 billion.

The programme replaces the cancelled iReX project, which had been launched under the previous government to replace the Interislander with two large rail-enabled ferries and rebuild the ports.

© Shippax