The Government has announced it won’t provide new funding to KiwiRail to help with the growing cost of replacing the Interislander ferry fleet.
In 2023, there were a number of issues with the ferries including the Interislander ferry Kaitaki losing power, Interislander ferry Aratere breaking down and Kaitaki hitting a Wellington wharf which left a large hole in the ship’s hull.
Two new ferries were expected to come into operation in 2026 alongside upgrades to terminal infrastructure.
But Finance Minister Nicola Willis announced on Wednesday the Government had declined to provide $1.47b to continue the plan.
“I have been advised by the KiwiRail Board that, in light of the Government’s decision, it will now oversee the wind down of the project and review its plans for the Cook Strait connection.
