The Future of Interislander Ferries: A Major Announcement Looms

After years of delays and cost-cutting measures, the New Zealand government is set to announce the future of the Interislander ferry service. The announcement, which is expected to take place on or before December 11, will reveal the look, size, and cost of the new ferries that will replace the aging vessels.

The Controversy Surrounding the iReX Project

A year after Finance Minister Nicola Willis canceled the two iReX mega ferries due to a cost blowout, the long-awaited replacements are finally on the horizon. The controversy surrounding the iReX project, which originally budgeted for $1.45 billion but ended up costing $3 billion, has left many wondering if the government can deliver a more affordable solution.

Pressure from Industries and Lobby Groups

The government is under immense pressure from a range of industries, lobby groups, and unions with conflicting interests. BusinessDesk journalist Oli Lewis says that making drastic changes to the structure or vessels that ply the route will be a massive legacy for the government, and if they get it wrong, they’ll cop a lot of flak over a long time.

“If they somehow manage to get a very good solution then Nicola Willis and co deserve applause for it as well,” Lewis said. “But the pressure is on, and I think we can expect some surprises in the coming days.”

The Debate Over Rail-Enabled Ferries

Among the decisions ministers risk facing flak over is whether or not the ships will be rail-enabled, meaning they have built-in rail tracks allowing rail wagons to be shunted directly onboard. Maritime experts, KiwiRail, and at least one major freight firm say it’s more efficient and environmentally sustainable.

However, trucking firms say the rail-enabled ships are unnecessary and costly. “Time is money in the logistics business, and they want to be able to accommodate faster turnarounds which they say rail-enabled ferries will do,” Lewis says.

The Government’s Promise of a More Affordable Solution

Prime Minister Jacinda Ardern has promised that the new ferries will be “a lot cheaper than $3.2 billion”. However, BusinessDesk journalist Oli Lewis points out that the government is already starting with a $600 million deficit from the cost of breaking the deal with Hyundai Mipo shipyard.

Who Will Announce the Details?

Lewis also mentions that Winston Peters, leader of New Zealand First, has publicly stated his preference for rail-enabled ferries. However, he was quick to blame Labour for mishandling the iReX project in its next term when he was out of government.

The Possible Options for the New Ferries

“Even if the ferries are already on order, they will not be arriving next year,” Lewis says. “Expect 2028 or ’29 when we receive the ferries.” He also outlines possible options for the new ferries, including choosing to buy second-hand or charter ships to keep costs down.

Conclusion

The future of Interislander ferries is finally on the horizon. With the government promising a more affordable solution and the pressure from industries and lobby groups mounting, it’s clear that this announcement will have far-reaching implications for New Zealand’s transportation infrastructure. We’ll be keeping a close eye on developments as more information becomes available.