What to expect from the interrislander announcement

The next steps to replace the Interrislander ferries will be revealed today by Winston Peters, more than 15 months since the coalition dismissed the Irex Ferry project of its predecessor.

Peters was appointed Rail’s new minister in December – a year after the day after the agreement with Irex was criticized – promising a cheaper solution with ships to be in operation until 2029, when the current aging fleet is set for retirement.

In Parliament last week, he said that today’s update – promised until the end of the month – would describe the type of ferry and the infrastructure plan, including port update costs.

“There is a performance indicator in the freight world called Difot – delivered full time. We are on the right track to deliver the goods fully and punctual.”

However, it will not include details about the vessel builder that are being selected by the government and the results of the government’s bidding process seeking innovative private sector ideas.

These will be provided in two updates at the end of the year.

The dockyard Hyundai -Mipo (HMD) – which had the previous contract – and a Finnish company are among the confirmed shipyards as competing for the contract. Peters visited HMD Sul -Korean this year and noted that this month they were the world’s number one naval builder.

A -chair question is whether ships can carry trains that can drive to the load – referred to as “rail -qualified” – or not. Other options include road bridge – where freight is taken from trains, loaded on the ships and then loaded back on trains on the other side – which the government called “railroad compatible” or “compatible with railways.”

Only one of the three ferries in the current interrota can carry trains, and the ships that will be delivered next year under the work plane may not have been able to use their Roll-of-Roll-off railway capacity until 2027 as soon as possible.

Concerns about the efficiency of the road bridge and Kiwirail’s ability to transport rail equipment between the North and South islands. Some commentators suggested that without at least some rail transport capacity, new branches would be needed on the North Island.

What ships take will affect the type of port infrastructure is necessary. Simply put, large ships increase the initial construction cost, as well as rail enrichment.

Door Updates – particularly the need to update the current infrastructure in Wellington and Picton, as well as expanding the ability to deal with larger ships, adding stronger walls and secure ties and securities – were the main source of cost explosions in the previous government.

Finance Minister Nicola Willis indicated in December that the ports of Wellington and Picton would be asked to support the cost load more of the updates.

Peters said the commitments to the sector showed that “there was no shortage of good, pragmatic and sensitive ideas when someone is willing to listen and argue.”

“We know unions representing the sailors of Cook Strait, engineers, masters and teams. We met on site with the center to listen to their opinions and see the infrastructure that served our country for decades. We met the mayor of Marlborough Nadine Taylor, and enjoy a priority hearing of his community, and his 100 percent advice, and 100 percent of his advice so that Marlboroughem’s priority.

“The small but effective team of Ferry Holdings met with Kiwirail, Ports employees, advice and many other stakeholders, and they did an extremely good job in the service of all of us in this house and in the service of our country.”

The coalition remains confident that its solution will end up costing less than the Irex project under hand -in -EBO.

Willis said this includes the interruption rate of the previous contract – the total cost of this has not yet been confirmed. The government reserved $ 300 million in a contingency fund, but the final numbers may be lower or higher.

In July last year, 1News They reported another US $ 484 million have already been spent on the project, including US $ 347 million on terminal project, consent and training works and other work to maintain the doors used after the cancellation of IREX.

Exact cost estimates for IREX vary depending on the schedules and who you ask. The total project costs at the time the ship contract were signed were about $ 1.45 billion and, when it was canceled, which increased to just under $ 3 billion – part of that cost supported by Kiwirail and ports.

Since December, Willis and Peters have pointed to employee advice costs can increase further, perhaps up to $ 4 billion.