Rail Minister Winston Peters. Photo: RNZ
A deal for the much-anticipated new Cook Strait ferries is just months away, the government says, as it confirms final talks are underway with a preferred shipbuilder.
A statement released on Wednesday confirmed "a letter of intent" had been signed with the chosen shipyard, marking the start of the final stage of negotiations.
Rail Minister Winston Peters said the shipyard would be named once the final contracts were signed.
But he said it had already agreed to a fixed price, required specifications, and a 2029 completion date.
"The letter of intent is a key milestone in any procurement process as it means the two parties are on the same page for the deal and can now iron out the technical points before signing later this year," Peters said.
Each ferry would measure 200 metres in length by 28 metres wide, with room for more than 1500 passengers, 70 crew, and 2.4 kilometres of lanes for trucks, cars and rail wagons.
The vessels would be diesel-electric hybrids with batteries, designed to reduce emissions and environmental impact.
Six shipbuilders had been shortlisted for the job through a closed tender process. Peters thanked the five other candidates for their "competitive engagement".
Peters said Ferry Holdings - the Crown company set up to buy the two vessels - had moved with pace, completing what is normally a multi-year procurement process in just nine months.
He contrasted that approach with the "mismanaged course" of the previous Labour government, which he claimed could have cost taxpayers $4 billion and delivered "ferries with nowhere to berth".
"In a few short months we will show the taxpayer exactly how we have saved them billions by returning to the no-nonsense ferry replacement solution that was supposed to happen in 2020", Peters said.
In December 2023, the coalition government cancelled the previous contract - signed by Labour - for two new ferries by 2026, citing a projected budget blow-out to nearly $3b. It later pointed to a Treasury estimate that cost overruns could lead to a total cost of $4b "based on international benchmarking".
Last month, Peters confirmed that its cancellation had cost the taxpayer $671m, including a $144m effective break-fee to previous contractor Hyundai.
Labour has described the decision to cancel the previous contract as a reckless "knee-jerk" decision.
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