New Zealand taps Chinese shipbuilder

A Chinese shipbuilder will start construction of New Zealand's two new Cook Strait ferries next year and the rail-enabled ships are scheduled to arrive at the Land Down Under in 2029, according to government announcements.

The ferries will operate across the Cook Strait, linking New Zealand's North and South Islands, making it one of the country's most strategically important infrastructure investments.

Rail Minister Winston Peters said the taxpayer contribution to the program will be no more than NZ $1.7 billion ($990 million). He said the new program will save NZ $2.3 billion compared with the previous proposal.

"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," he said.

As part of the program, the two ferries will be built by one of the major shipbuilders in China, Guangzhou Shipyard International Company, or GSI, under a NZ $596 million fixed-price contract with Ferry Holdings Limited, signed in November 2025.

Ferry Holdings, a New Zealand government-owned company established in March 2025 to procure two new rail-enabled ferries for Cook Strait, is leading the government's Cook Strait Ferry Replacement Programme.

Under the program, each ferry will be able to carry up to 1,530 passengers, with 2.4 kilometers of vehicle lanes for cars and trucks, as well as full rail capability for transporting rail wagons, significantly improving capacity and efficiency compared with the current fleet.

The new ferries will feature a diesel-electric hybrid with batteries as their power and propulsion system, enabling them to switch between diesel and battery power to reduce fuel consumption and carbon emissions, and are designed for a 30-year service life.

Welcoming the government's latest announcement, Ferry Holdings reiterated that the company and its partners remained focused on delivering the ferries on schedule and within the approved funding envelope, while adopting a "maximum reuse, minimum viable, value-for-money" approach to port upgrades.

Chris Mackenzie, chair of Ferry Holdings, told China Daily that GSI had demonstrated the technical capability, production capacity and delivery experience required to build two highly complex rail-enabled ferries for Cook Strait operations.

"We have found our engagement with GSI to be professional, constructive and focused on achieving successful outcomes," Mackenzie said.

He said there had been a strong emphasis throughout the program on collaboration, knowledge sharing and problem solving, all of which were essential elements of a major infrastructure project.

"All of this provides us confidence that we have selected a partner that can deliver a project of national significance for New Zealand," he said.

Creating value

Mackenzie added that Ferry Holdings looked forward to working closely with GSI to deliver the vessels to the highest standards and create value for both companies and countries.

When announcing the contract in November last year, Peters, the minister, said GSI had received the highest overall rating in the competitive tender process, impressing with its technical expertise and ability to deliver on time and on budget.

Peters said the agreement was "not just between the shipyard and Ferry Holdings but also as a significant contribution to economic relations with China".