Cook Strait Ferry Replacement

The story so far

In early January 2025, strong winds and large swells led Interislander and Bluebridge to cancel and delay multiple Cook Strait ferry sailings over several days.^{4, 6, 12 Jan 2025} A poll found nearly half of New Zealanders wanted new Interislander ferries to be rail-enabled, as the government weighed replacement options after abandoning the iRex project over cost increases.^{10 Jan 2025} From February, Rail Minister Winston Peters launched a global search for two replacement vessels and appointed directors to Ferry Holdings Limited to negotiate the procurement contracts.^{4, 17 Feb 2025} KiwiRail confirmed the ageing Aratere would retire by 30 August to prepare Picton for the new ships, with 70 jobs proposed to be cut and capacity expected to fall.^{19, 23 May 2025}

Latest

In August, KiwiRail made a final $144 million payment to Hyundai Mipo Dockyard, bringing the total cost of exiting the cancelled iReX contract to more than $600 million.^{15 Aug 2025} On 2 September the government named a preferred shipyard, chosen from a shortlist of six, to build the two new ferries.^{3 Sep 2025}

What's next

A final deal with the preferred shipyard is expected to be signed by the end of the year.^{3 Sep 2025}

Key moments

1. 6 Jan 2025Stormy weather causes weekend-long Cook Strait ferry cancellations and delays.
2. 4 Feb 2025Government begins a global search for two replacement ferries.
3. 17 Feb 2025Directors appointed to Ferry Holdings Limited to negotiate new ferry contracts.
4. 31 Mar 2025Peters unveils plan for two rail ferries to replace the fleet by 2029.
5. 19 May 2025KiwiRail confirms Aratere will retire by 30 August.
6. 15 Aug 2025Final settlement takes total cost of breaking Hyundai contract past $600 million.
7. 3 Sep 2025Preferred shipyard chosen to build the two new ferries.

Written from the stories below; each sentence links to its sources.