After canceling orders with South Korean shipbuilders, the New Zealand government has formally signed a construction contract with Guangzhou Shipyard International (GSI) for two hybrid-powered ferries.
This contract was signed by the New Zealand government through its procurement company, Ferry Holdings Limited, with a total price of NZ$596 million (approximately RMB 2.376 billion, USD 334 million). The new ships are expected to commence construction in 2027 and be delivered in 2029. They will traverse the Cook Strait on the Wellington to Picton route, connecting the road and rail networks between New Zealand’s North and South Islands.
This series of ferries will be designed with the participation of two Danish companies. Knud E. Hansen will serve as the main consultant for Ferry Holdings, and OSK Design will be responsible for the ship’s interior design. The new ships will have an overall length of 200 meters and a width of 28 meters, capable of carrying 1,530 passengers and 70 crew members, with 2,400 lane meters of vehicle loading space, including full rail transport functionality.
The ships will utilize a diesel-electric hybrid propulsion system supported by large battery packs. The main engines can use conventional fuel or biofuels, and the batteries can be charged at sea and while docked, significantly reducing fuel consumption and emissions over their 30-year lifecycle.
To enhance maneuverability, these ferries are equipped with azimuth thrusters and powerful bow thrusters, enabling them to move sideways (“crab walk”) at 1 knot in 40-knot winds, a performance far exceeding the capabilities of the existing fleet. This improvement significantly enhances navigation safety and operational reliability in the harsh conditions of the Cook Strait.
The new ferries will be fully integrated into the New Zealand rail network, enabling efficient loading and unloading, and offering the flexibility to transport various types of cargo. The operation of the two ferries together will increase freight capacity by 44% and passenger space by 63%, substantially boosting overall transport efficiency.
Environmental considerations are central to the ship design. The hull and propulsion system are shaped to minimize wake energy, helping to protect coastlines and sensitive marine habitats. These ships will strictly adhere to international standards for emissions, ballast water management, and noise control, ensuring sustainable operation. Furthermore, the ships comply with “Safe Return to Port” requirements and are equipped with robust, purpose-built safety and operational systems to ensure critical system functionality is maintained in the event of a maritime incident.
Simultaneously, the New Zealand government needs to invest NZ$1.27 billion (approximately RMB 5.064 billion) in /upgraded supporting wharves and infrastructure at Wellington and Picton ports, as well as project management fees and contingency reserves. Combined with the cost of the new ships, the total investment for the entire project is approximately NZ$1.866 billion.
New Zealand’s Minister for Rail, Winston Peters, stated: “The total cost of the entire project will be less than NZ$2 billion, with the taxpayer’s portion being less than the previously announced NZ$1.7 billion. This means taxpayers have saved NZ$2.3 billion. This is thanks to us abandoning the previous high-priced consultants who kept adding extra infrastructure, leading Treasury to warn that costs would climb to NZ$4 billion.”
It is understood that KiwiRail, New Zealand’s national rail group, originally placed an order for two hybrid-powered RoRo ships with South Korea’s HD Hyundai Mipo in July 2021, with a total contract value of USD 369 million. Those ships were planned to be 220 meters long, 31 meters wide, with a gross tonnage of 53,000 tons, a passenger capacity of 1,900 people, a lane length of 3,600 meters, and the ability to carry 180 cars. This was part of the iReX (Inter-Island Resilient Connection) project initiated by New Zealand’s Labour government.
According to the original plan, these two hybrid-powered ships for KiwiRail were intended to replace the three older vessels, the *Kaitaki*, *Aratere*, and *Kaiarahi*. However, due to severe cost overruns, the project was halted after the coalition government came into power. At the end of 2023, KiwiRail disclosed that it had to abandon the project as the New Zealand government decided not to provide further funding for the iReX project.
In August this year, KiwiRail reached a final settlement agreement with HD Hyundai Mipo, agreeing to pay HD Hyundai Mipo NZ$144 million to terminate the construction contract for these two RoPax ships. Including the down payment already made, the total amount KiwiRail paid to HD Hyundai Mipo reached NZ$222 million, equivalent to about one-third of the original contract value.
The ferry route between New Zealand’s North and South Islands crosses the Cook Strait, a distance of approximately 92 kilometers. It is a critical transport link connecting Wellington (North Island) with Picton (South Island) and a vital part of New Zealand’s road and rail network. The journey on this route typically takes 3-4 hours and is operated by the state-owned enterprise Interislander and the private company Bluebridge. Interislander, which belongs to KiwiRail, can carry passengers, cars, and rail freight wagons simultaneously.
