The new ferries will replace the ageing Interislander fleet. Photo: Flickr user Sid Mosdel CC BY 2.0
Agreements have been reached with port companies and KiwiRail on the type of infrastructure and equipment needed before two new Cook Strait ferries arrive in 2029.
Rail Minister Winston Peters announced the agreements between Ferry Holdings, Centre Port, Port Marlborough and KiwiRail while in Picton on Tuesday.
"The agreements entered into effectively mean the ports and KiwiRail are in, boots and all, with Cabinet's preferred low-cost option," Peters said.
Existing port infrastructure would be used where possible to keep costs down, he said.
New wharves would be built in Picton and the existing wharf in Wellington would be modified, strengthened and extended "by the minimal amount necessary" to accommodate the new, larger ships, Peters said.
New linkspans will be built at both ports.
When asked about concerns about the seismic vulnerability of the Wellington port terminal, Peters said seismic issues were well known.
"Well they've always had seismic problems in Wellington and I'm very confident we can get on top of that with the changes and be ready for passengers in 2029," he said.
The plan aims to reuse the current passenger and commercial vehicle facilities and the terminal building at both ports.
"We are pleased to confirm for the locals in Picton that the Dublin Street overbridge will be built - ridding the town of the blocked streets it will experience when freight-laden trains arrive at the port," Peters said.
"The road and rail will be grade separated before 2029 as a safety and an efficiency improvement for road and rail."
The ports and KiwiRail have agreed to minimal scope improvements to the rail yards, which Peters said would avoid a costly scope creep by reusing as much of the existing yards as possible at both ports.
The first Interislander service started in 1962.
"This service has been going for a long time - 63 years of people, road and rail all served on the Cook Strait. We are ensuring this continues for another 60 years without wasting billions," Peters said.
Six shipbuilders have been shortlisted for the job of delivering the new Cook Strait ferries, with a contract expected to be awarded later this year.
The investment split between the companies and each company will also be confirmed later this year.
Ferry Holdings - which was set up to lead contractual negotiations with shipyards and ports - has outlined the jobs ahead to 2029 as part of its first Statement of Performance Expectations and Statement of Intent.
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