KiwiRail in discussions with HMD over contract cancellations

2024-03-01T18:48:48+00:00 March 1st, 2024|Marketing|

New Zealand’s KiwiRail has commenced discussions with Hyundai Mipo Dockyard (HMD) to sign a contract termination agreement for the building of two new Interislander ropaxes.

This follows the New Zealand’s Government’s decision last year not to provide further funding for the Inter-Island Resilient Connection (iReX) project.

The Government has announced that it will appoint a Ministerial Advisory Group (MAG) to provide independent advice and assurance to Ministers on the future options for a Cook Strait connection.

The Ministry of Transport will also lead an assessment of long-term inter-island service requirements.

“Replacement options for the Interislander ferries are expected to be part of these broader reviews and KiwiRail will be working with our customers and the international shipbrokers on options to source suitable replacement ferries,” said CEO Peter Reidy.

“KiwiRail will be working closely with the Government, MAG and all stakeholders on options for a safe, reliable and resilient Cook Strait connection to transport freight and passengers.

“KiwiRail would like to thank our people, contractors, our port, Mana Whenua and union partners, and all those who have worked tirelessly on this project up to this date, but, unfortunately, we cannot proceed without further Government funding. We respect the Government’s role as shareholder and funder to make this decision.

“KiwiRail would also like to thank HMD. HMD has continually shown its value and professionalism as one of the world’s leading shipbuilders, with work delivered to the highest quality. KiwiRail thanks HMD for its partnership through the design phase of the contracted ferries.

“KiwiRail’s focus is on providing the safe, reliable and enjoyable Interislander service our customers expect. The Interislander moves on average $14 bill of freight and over 800,000 passengers between the islands each year and is an essential part of the New Zealand supply chain.

“Our high-quality maintenance regime is consistent with the world’s best practice standards. Over the recent busy summer period of December and January, we delivered 100% reliability and 93% on-time performance,” he concluded.