New ferries operator announced, vessels named

The Government has confirmed KiwiRail will operate New Zealand’s two new Cook Strait rail ferries, with the vessels to be named Kupe and Cook.

Minister for Rail Winston Peters says the decision secures a practical, affordable, and enduring Cook Strait ferry service for the next generation and beyond.

“KiwiRail has run the Interislander since its inception in 1962, and in our book, experience counts,” Mr Peters says.

“This decision keeps the rail freight network and ferry operation working as one system, supporting the critical domestic freight route between Auckland and Christchurch.

“KiwiRail has demonstrated improved performance, with Interislander reliability now at 98 percent and KiwiRail is poised, pending final audit, to achieve its $160 million earnings target to 30 June 2026,” Mr Peters says.

Under the confirmed arrangements, KiwiRail will operate the new ferries when they arrive in 2029 for the 30-year life of the assets, with the arrangement to be reviewed in 2039 after the first ten years.

“This is no gift. It is a commercial arrangement that protects ratepayers, recognises the investments made by the ports, and ensures taxpayers receive the benefit of every cent invested in infrastructure,” Mr Peters says.

“KiwiRail will pay commercially priced port fees to CentrePort, Port Marlborough and Ferry Holdings. CentrePort and Port Marlborough will earn a reasonable return on their $100 million and $110 million contributions respectively.

“Because more complex new infrastructure is being built in Picton with $373 million to be paid by Ferry Holdings, a special purpose vehicle will be established to co-own assets between Port Marlborough and Ferry Holdings.

The Government has reconfirmed the taxpayer contribution to the programme will be no more than $1.7 billion, as announced in November 2025 alongside confirmation of a fixed price contract with Guangzhou Shipyard International. Ferries will arrive in 2029 with ship construction on schedule to start in 2027. 

“The new ferry programme saves New Zealanders $2.3 billion compared to the previous project, while still delivering the rail ferries and infrastructure New Zealand needs,” Mr Peters says.

“Project iReX had blown out to $3.1 billion according to KiwiRail, while Treasury had already warned the previous Government it was on course to $4 billion.

“Our approach is simple: build what is needed, not what is desired. Do what works, not what dazzles. Trust the experts, not the yes-men.

“The ferries will be supported by new marine infrastructure in Picton and modified marine infrastructure in Wellington, funded with appropriate contingency and incentives to keep Ferry Holdings, KiwiRail, both ports and their builders focused on on-time, on-budget delivery.

“There will be no cost-plus construction contracts and no lazy project management. Ferry Holdings holds the purse strings and retains the major rights in controlling the programme,” Mr Peters says.

The ferries have been legally registered with new names honouring New Zealand’s maritime history and the enduring role of Cook Strait in connecting the country.

“The first ferry will be called Kupe, and the second ferry will be called Cook,” Mr Peters says.

“These are proper names. Historic names. New Zealand names.

“Kupe and Cook reflect New Zealand as it actually is: a country shaped by the sea, by settlement, by risk, by enterprise, and by people who crossed dangerous waters in search of a future.”

The new ferry programme preserves rail across Cook Strait, supports freight and passenger resilience, and sets up a long-term pathway for KiwiRail to build a reserve to purchase replacement ferries in 2059.

“This is not just a deal to secure the Strait for another generation; it secures it for the next two generations.

“Once again, we are charting the practical course on new tides, with new vessels, and with common sense back at the helm,” Mr Peters says.

[Ferries images / video at Downloadable Assets - Ferry Holdings] ...