The New Zealand Government says taxpayers will save billions under a revised plan for two new Interislander ferries and streamlined infrastructure in Picton and Wellington.

Rail Minister Winston Peters confirmed the deal on Monday.

• Two new road-rail ferries will enter Cook Strait service in 2029.
• A $596 million (≈ €290 million) fixed-price contract has been signed between Ferry Holdings and Guangzhou Shipyard International.
• The total programme cost remains below $2 billion (≈ €974 million).
• Taxpayer funding will stay under $1.7 billion (≈ €828 million) allocated earlier this year.
• Peters says this represents a $2.3 billion (≈ €1.12 billion) saving, after removing costly consultancy-driven upgrades that pushed estimates towards $4 billion (≈ €1.95 billion).
• Infrastructure spending will be recovered through port fees from Interislander revenue.
• Interislander must build reserves to fund replacement vessels over the next 30 years.
• Ferry Holdings will lead infrastructure delivery, supported by CentrePort, Port Marlborough, and KiwiRail.
• Disruption to Interislander and Bluebridge operations will be minimised.

Peters will travel to Guangzhou next week with Ferry Holdings leadership to mark the agreement and strengthen economic ties with China.