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New Zealand Government signs NZD 596 million fixed contract with GSI for two new rail-enabled ferries

FerryThe New Zealand Government, through its procuring company Ferry Holdings Limited, has now signed a firm contract with GSI (Guangzhou Shipyard International) for the construction of the two new rail-enabled hybrid Interislander ferries. The ferries, built at a NZD 596 million fixed price, will enter Cook Strait service in 2029.

Each vessel will be 200 metres long and 28 metres wide, accommodating up to 1,530 passengers, 70 crew, and 2,400 lane metres of vehicles, including full rail capability.

The ships use a diesel-electric hybrid propulsion system supported by large battery banks. The engines can run on either conventional fuel or biofuel and the batteries can be recharged both at sea and from shore power, reducing fuel use and emissions over the vessels’ projected 30-year operational lifespan.

For improved manoeuvrability, the ferries are fitted with azimuth thrusters and powerful bow thrusters, enabling them to “crab” sideways at one knot in 40-knot winds from any direction—far exceeding the capabilities of the existing fleet. This enhances both safety and operational reliability in challenging Cook Strait conditions.

The new vessels will be fully integrated with New Zealand’s rail network, offering efficient loading and unloading and the flexibility to carry a broad mix of freight. Together, the two ferries will increase freight lane capacity by 44% and deliver 63% more passenger space, significantly boosting overall transport efficiency.

Environmental considerations are central to the design. The hulls and propulsion systems are shaped to minimise wake energy, helping protect coastlines and sensitive marine habitats. The vessels will comply with international standards for emissions, ballast water management, and noise control, ensuring sustainable operation.

In addition, the ferries meet Safe Return to Port requirements and are equipped with robust, fit-for-purpose safety and operational systems designed to remain fully functional in the event of a maritime incident.

Ferry Holdings has previously stated that the ship design firms, Knud E. Hansen and OSK Design, both headquartered in Denmark, are involved in the project. Knud E. Hansen as Key Advisor for Ferry Holding, while OSK Design will be responsible for the interior design of the newbuild project.

NZ Rail Minister Winston Peters said:

“Two new ferries serving road and rail will enter Cook Strait service in 2029, thanks to a NZD 596 million fixed price contract between Ferry Holdings and experienced shipbuilder Guangzhou Shipyard International.

The total programme will cost less than NZD 2 billion, with the taxpayer contribution coming in under the NZD 1.7 billion allocated at the start of this year. 

Spending less than NZD 1.7 billion means the taxpayer has saved NZD 2.3 billion while still getting the ferries and infrastructure they want, because we have done away with the expensive consultants who hijacked the project by adding more and more infrastructure until Treasury warned the project would cost NZD 4 billion.  

Funding spent on infrastructure will be recovered over the life of the new Interislander ferries and infrastructure through port fees paid from Interislander revenue, and Interislander will be expected to build sufficient reserves to buy new ferries again in 30 years – or put simply, structured like a normal business.

We extend our thanks to the Ferry Holdings board and management team and the pragmatists at CentrePort, Port Marlborough and KiwiRail who heard the clarion call for fiscal discipline to secure the Strait.

Ferry Holdings will be in the driving seat for the infrastructure, ably and contractually backed by CentrePort, Port Marlborough and KiwiRail, and accommodations will be made to minimise disruption to Interislander and Bluebridge.”

© Shippax

Nov 20 2025


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