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Posted by Dale Crisp
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17 July, 2026
THREE years ahead of their anticipated arrival from Chinese builders GSI the New Zealand Government has unveiled the names of the replacement Cook Strait email/ro-paxes and confirmed KiwiRail as the operator.
The ferries have been legally registered with new names honouring New Zealand’s maritime history and the enduring role of Cook Strait in connecting the country, rail minister Winston Peters announced today [17 July].
“The first ferry will be called Kupe, and the second ferry will be called Cook,” Mr Peters said.
“These are proper names. Historic names. New Zealand names. Kupe and Cook reflect New Zealand as it actually is: a country shaped by the sea, by settlement, by risk, by enterprise, and by people who crossed dangerous waters in search of a future.
"The decision to appoint KiwiRail as their operator “secures a practical, affordable, and enduring Cook Strait ferry service for the next generation and beyond,” the minister said.
“KiwiRail has run the Interislander since its inception in 1962, and in our book, experience counts.
“This decision keeps the rail freight network and ferry operation working as one system, supporting the critical domestic freight route between Auckland and Christchurch."
Mr Peters said KiwiRail had demonstrated improved performance, with Interislander reliability now at 98% and KiwiRail is poised, pending final audit, to achieve its NZ$160 million earnings target to 30 June 2026.
Under the confirmed arrangements, KiwiRail will operate the new ferries when they arrive in 2029 for the 30-year life of the assets, with the arrangement to be reviewed in 2039 after the first ten years. However, the ships will be owned by Ferry Holdings or an equivalent state entity and leased to KiwiRail.
“This is no gift. It is a commercial arrangement that protects ratepayers, recognises the investments made by the ports, and ensures taxpayers receive the benefit of every cent invested in infrastructure,” Mr Peters said.
“KiwiRail will pay commercially priced port fees to CentrePort [Wellington], Port Marlborough [Picton] and Ferry Holdings [vessels owner]. CentrePort and Port Marlborough will earn a reasonable return on their $100 million and $110 million contributions respectively.
“Because more complex new infrastructure is being built in Picton with $373 million to be paid by Ferry Holdings, a special purpose vehicle will be established to co-own assets between Port Marlborough and Ferry Holdings.”
The government reconfirmed the taxpayer contribution to the program will be no more than $1.7 billion, as announced in November 2025 alongside confirmation of a fixed price contract with Guangzhou Shipyard International. Ferries will arrive in 2029 with ship construction on schedule to start in 2027.
“The new ferry program saves New Zealanders $2.3 billion compared to the previous project, while still delivering the rail ferries and infrastructure New Zealand needs,” Mr Peters said.
“Project iReX had blown out to $3.1 billion according to KiwiRail, while Treasury had already warned the previous Government it was on course to $4 billion.
“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."
