Transporting New Zealand has welcomed the Government’s announcement on the Cook Strait ferry project, saying it provides certainty that will allow focus on timely delivery of supporting port infrastructure by 2029.
The national road freight association says landside infrastructure, including modifications to the existing Aratere berth in Wellington and a new dual-level linkspan in Picton, must be delivered before the new vessels arrive.
Transporting New Zealand policy and advocacy head Billy Clemens says the Government needs to avoid the delays and cost blowouts that have affected other major transport projects.
“Our road freight members want to see the party politics get parked, and a bipartisan focus on delivery,” Clemens says.
“The Cook Strait is an extension of SH1, so having a competitive connection with adequate capacity is essential to our road freight members and the national supply chain. Approximately $30 billion of freight crosses that Cook Strait each year, with Interislander capturing roughly 45% market share and Bluebridge on 55% (according to 2024 MoT estimates).”
Clemens says the Government’s decision to procure rail-enabled vessels, against advice from the Government’s Ministerial Advisory Group, presents additional cost escalation risks.
“The Government’s decision to procure rail-enabled vessels, against the advice of the Government’s Ministerial Advisory Group, presents an additional risk of cost escalations, as the Ministry of Transport noted back in 2023. This risk will have to be closely monitored,” he says.
“Ferry Holdings Limited, and the shareholding Ministers of Transport, Rail and Finance all need to be focussed on prompt delivery of the Cook Strait Ferry Replacement Work Programme. We are reassured to see Ferry Holdings has a clear statement of intent and performance indicators, and look forward to meeting with their CEO shortly.”
Freight capacity concerns
With only four ferries currently operating, Clemens says Interislander and Bluebridge will need to carefully manage freight capacity over the next four years.
Freight companies want to see both operators taking steps to ensure adequate freight capacity, including prioritising time-sensitive freight over passenger transport where necessary.
“With only four ferries currently operating, Interislander and Bluebridge are going to have to carefully manage freight capacity, or we will see price hikes and costly delivery delays for businesses and consumers,” Clemens says.
