The Government has confirmed KiwiRail will continue operating New Zealand’s Cook Strait rail ferry service when two new vessels enter service in 2029, ending months of speculation over who would run one of the country’s most important transport links. The announcement also revealed the ferries will be named Kupe and Cook, recognising both Māori and European maritime history.
Rail Minister Winston Peters said retaining KiwiRail as the operator provides continuity for the country’s integrated rail and ferry network. KiwiRail has operated the Interislander service since 1962, linking the North and South Island rail systems while carrying passengers, freight and vehicles across Cook Strait.
The two new rail-enabled ferries are expected to arrive in 2029 and will replace the ageing Interislander fleet. They are being developed as part of a broader programme that includes significant upgrades to port infrastructure in Wellington and Picton to support the next generation of vessels.
KiwiRail welcomed the decision, saying confirmation of the operator provides certainty for staff, customers and freight operators while allowing work to continue on preparing for the transition to the new fleet. The company says it will continue focusing on maintaining reliable services until the replacement vessels enter operation.
The Maritime Union has also welcomed the announcement, describing it as an important decision that keeps a critical piece of national transport infrastructure in public ownership. The union says public operation protects jobs, skills and the long-term resilience of New Zealand’s freight network, while ensuring the strategic Cook Strait connection remains focused on public service rather than private profit.
The confirmation marks another milestone in the Government’s revised ferry replacement programme after the cancellation of the previous iReX project. Construction of the new ferries is expected to continue over the coming years, with the vessels entering service in 2029 as part of a long-term plan to modernise New Zealand’s inter-island transport network.
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