On November 27, China State Shipbuilding Corporation Limited’s (CSSC) subsidiary Guangzhou Shipyard International Company Ltd. (GSI) signed a contract with New Zealand’s Ferry Holdings Ltd. (FHL) for the construction of two new ro-pax vessels.
Attending the signing ceremony were distinguished guests and leaders including Mr. Winston Peters, New Zealand’s Minister of Foreign Affairs and Minister for Rail; Mr. Jonathan Austin, New Zealand’s Ambassador to China; Mr. Michael Zhang, New Zealand’s Consul-General in Guangzhou; Mr. Chris McKenzie, Chairman of Ferry Holdings Ltd.; Mr. Peng Yuanpu, Vice President of CSSC; and Mr. Zhou Xuhui, Director and General Manager of GSI.
The ro-pax vessel project signed that day serves as an important link connecting the friendship between China and New Zealand. Driven by the collaborative efforts of CSSC and FHL, this partnership has taken a crucial step towards mutual benefit and success.
It is understood that the total contract value for this construction project is 596 million New Zealand dollars (approximately 2.376 billion Chinese Yuan or 334 million US dollars). The new vessels are expected to commence construction in 2027 and be delivered in 2029. This series of ferries will be designed with the participation of two Danish companies: Knud E. Hansen will act as the primary consultant for Ferry Holdings, and OSK Design will be responsible for the ship’s interior design.
The new ships will be 200 meters long and 28 meters wide, capable of accommodating 1,530 passengers. They will be equipped with 2.4 kilometers of mixed-use lane space and capacity for 40 rail wagons. Upon completion and delivery, they will primarily be used for operations across the Cook Strait. Featuring a hybrid power design, they can switch between diesel power and electric drive, aiming to enhance environmental performance. Diesel engines (compatible with biofuels) will power the main propulsion system and onboard services. The vessels will also be equipped with energy storage batteries that provide supplementary power. These batteries can be charged either during voyages or via shore power, helping to save fuel and reduce environmental impact.
To improve maneuverability, the new ro-pax vessels are equipped with azimuth thrusters and powerful bow thrusters, enabling them to perform “crabbing” maneuvers sideways at a speed of 1 knot in 40-knot winds. This performance far exceeds the capabilities of the existing fleet. This enhancement significantly improves navigation safety and operational reliability in the challenging conditions of the Cook Strait.
The new ships will be fully integrated into New Zealand’s 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.
At the signing ceremony, representatives from both sides held cordial discussions about the project. They expressed their anticipation for the high-quality construction and delivery of these two new ro-pax vessels. They also looked forward to this project further promoting economic development in both China and New Zealand, and contributing to a better future where the people of New Zealand can travel across the Cook Strait more safely and conveniently.
This ro-pax vessel project is a national-level comprehensive engineering project for New Zealand, carrying the important mission of improving transportation between the North and South Islands and serving the people’s livelihood. CSSC is consistently committed to providing top-tier products and professional services for the global shipping market. GSI emerged victorious from intense competition among several internationally renowned shipbuilding companies, ultimately partnering with New Zealand to create a benchmark vessel type that integrates green and intelligent features, representing the future development trend of the maritime industry.
It is understood that KiwiRail, New Zealand’s national rail group, originally placed an order in July 2021 with South Korea’s HD Hyundai Mipo Dockyard for two hybrid-powered ro-ro vessels, 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, a lane length of 3,600 meters, and capacity for 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 vessels from KiwiRail were intended to replace three older ships: 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 announced that, as the New Zealand government decided not to continue funding the iReX project, the company had to abandon it.
In August this year, KiwiRail reached a final settlement agreement with HD Hyundai Mipo Dockyard, agreeing to pay NZD 144 million to terminate the construction contract for these two ro-pax vessels. Including the previously paid deposits, the total amount KiwiRail paid to HD Hyundai Mipo Dockyard reached NZD 222 million, equivalent to approximately one-third of the original contract value.
The New Zealand government’s decision to place the new order with GSI this time reflects GSI’s strong capabilities in the ro-pax vessel sector. GSI has been deeply involved in ro-pax ship construction for over twenty years. The ro-pax vessels built and delivered by GSI are known for their elegant appearance, exquisite interiors, and world-class noise and vibration control levels. GSI currently holds the global record for the most ro-pax vessels built and delivered. Its delivered ro-pax vessels operate in sea areas worldwide, including domestic routes in the Bohai Bay and South China Sea, as well as the Baltic Sea, North Sea, Mediterranean Sea, and the English Channel in Northern Europe. These vessels are becoming a mobile maritime name card for “Made in China.”
Concurrently with ordering the new ships, the New Zealand government plans to invest NZD 1.27 billion (approximately 5.064 billion Chinese Yuan) in new /upgrades of supporting wharves and infrastructure at Wellington Harbour and Picton Port, along with project management fees and contingency reserves. Combined with the cost of the new vessels, the total investment for the entire project is approximately NZD 1.866 billion.
Including the latest order, according to data from Clarksons, GSI’s current orderbook totals 91 vessels with 6.72 million deadweight tons. This comprises 47 tankers, 18 container ships, 16 car carriers, 5 ro-pax vessels, 4 offshore vessels, and 1 other vessel type, with delivery schedules extending until 2029.
