Hyundai back in running to build two new Cook Strait Interislander ferries - after Willis cancelled the last contract
NZ secured two next generation, hybrid ferries for 40% less than market price during Covid. The cancellation of the partially built 2026 ferries resulted in a loss of ~$500mn to more than $1bn
Quick update here on the ferries cancellation saga, now led by Winston Peters.
RNZ:
The giant Korean ship builder Hyundai could be back in the running to build two new Cook Strait ferries, following a meeting between the company and Rail Minister Winston Peters in Seoul on Friday….
Peters as new Rail Minister has since embarked on a world-wide tender to find by the end of March a builder for two cheaper and smaller rail-enabled ferries, and have them running by 2029.
He said Hyundai was open to considering bidding to build the new smaller ferries and had indicated it could meet the size specifications involved in that.
"I've got a serious contender back in the ring of potential contenders for the tender for two replacement ferries for the Cook Strait."…
When …asked why Hyundai wanted to bid again having been burned by New Zealand before, Peters said "Hyundai understand the vagaries of politics as much as anybody else and we had a marvellous conversation".
Here’s some quick notes from me on this:
The cancelled next-generation, hybrid ferries were partially built when cancelled
They would have been delivered in 2026 - along with two seismic upgraded ports to replace the failing, older ones
The cancelled ferries would have accommodated 40 rail wagons, 3000 lane metres for vehicles, and 1800 passengers for the projected volume increases across the Straits.
We paid a significant break fee of ~$500mn - but that won’t be all
Maintenance costs on the aging Interislander ferries have doubled to $65mn + a year - not to mention safety risks.
We bought the ferries for 40% less during Covid - we will now pay full price + inflation.
Despite MFAT advice to be “careful and deliberate” in her communications with the South Korean government, this government informed South Korea, our 6th largest trading partner, 1/2 hour before by text.
Winston"s humility is exceeded by his ego. He is delusional, thinking that he knows what's best for us. He only supported National to get back into parliament. If he didn't go into coalition with National & Act we'd still be getting upgraded port facilities & big new ferries. Now there is no certainty that the ferries won't be privatised. Latest rnz.co.nz photo op Peters shaking hand with Chinese, in story about New Zealand's image if we don't increase our defense spending. Odd how gov't can find money to increase spend on military but can't find money for public health or public housing.
Less for More should have been Nationals election promise.
Less government competence for more idiot atlas agenda.
or in the case of Nicky no boats, less boat for more money and delayed delivery.
Nicky No Votes would be just as accurate.
But dont worry these clowns will be able to improve GDP 😂😂😂😂