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Hyundai Mipo Shipyard Chosen to Build New Interislander Ferries

KiwiRail has named world-renowned Hyundai Mipo Dockyard (HMD) based in Ulsan, South Korea as its preferred shipyard to build the two new Interislander ferries.

KiwiRail Chief Executive Greg Miller said the decision to work with HMD was a significant step forward for the new Interislander project and the culmination of a robust, competitive, year-long selection process.

“Our ship procurement team and the evaluation panel, including naval architects, ship brokers and maritime lawyers, have undertaken a rigorous process to select the right shipyard and this announcement, on schedule, is a great end to the year for our team,” Mr Miller said.

“KiwiRail has specified a Makers’ List of components – predominantly American and European, including the engines, propulsion system and navigation system – to ensure the new ships will serve New Zealand well for the next 30 years.

“The two new ferries and the upgraded terminals in Waitohi Picton and Wellington are a major investment in the future of the Cook Strait freight and passenger services, with a significant taxpayer contribution. It’s crucial that we deliver the best outcome for New Zealand and for our passengers and customers and with the selection of HMD shipyard, I am confident we have achieved that.”

Once commissioned and built, the two new ferries will replace KiwiRail’s three ageing Interislander ferries,which are nearing the end of their working lives. KiwiRail operates around 3800 services a year, transporting about 850,000 passengers, 250,000 cars and up to $14 billion worth of freight, but with significant growth predicted.

New terminals and berths in Waitohi Picton and Wellington are planned to accommodate the new ferries and improve the Interislander service for customers and staff.

HMD is the world’s sixth-largest shipbuilder globally with decades of experience building complex ships, including HMNZS Aotearoa for NZDF.

It is over 20 years since New Zealand introduced a brand-new purpose-built ferry to its fleet. Once built, the two new ferries will be more efficient and support KiwiRail’s goal to reduce carbon emissions by 30 per cent by 2030 and be carbon neutral by 2050. The new ferries will be designed to use different energy sources through their life if these are available in New Zealand, and at day one will provide for battery operations when docking and plug into local power supply at each port.

The Government committed $400 million in Budget 2020 to the New Interislander project, building on a $35 million-dollar investment in Budget 2019.

Massimo Soprano, Ships Programme Manager at KiwiRail, said the selection process had been highly competitive with some of the best shipyards in the world putting in tenders for the contract.

Mr Miller said that despite the complexity and number of parties involved in the purchase of the two new ferries and the terminal upgrades in both Waitohi Picton and Wellington, things were progressing well with the new Interislander project.

A Letter of Intent (LOI) has now been signed with HMD. A LOI is a non-binding agreement that allows KiwiRail and HMD to progress to more detailed contract negotiations and is a normal step in the procurement process for large-scale ship building.

KiwiRail’s Tourism Trains Back on Track for Summer

All KiwiRail’s long distance scenic services will be back this summer, giving New Zealanders the opportunity to see their spectacular country from the comfort of a train.

“When New Zealand went into its Level 4 Covid lockdown at the end of March, all our scenic trains stopped running and we needed to gauge the market and plan the services’ return,” KiwiRail Group Chief Executive Greg Miller says.

“We also had to carry out maintenance work on the carriages we use, and that work was delayed by the Covid lockdown.  We prioritised the TranzAlpine, which runs between Christchurch and Greymouth, so it was the first service to resume.

“We have now reached the stage where we are able to announce plans to also re-start the Coastal Pacific and Northern Explorer.

“A record winter school holidays on Interislander and a highly successful winter promotion of the TranzAlpine gives us the confidence that the public will support these tourism trains which will be back in time for the summer holidays.”

The Coastal Pacific runs from spring to autumn, offering vistas of the spectacular coastline between Picton and Christchurch, via Kaikoura, during a five-hour journey.

The Northern Explorer runs between Auckland and Wellington over more than 10 hours, taking in views of Mts Tongariro, Ngāuruhoe and Ruapehu, as well as twisting through the famed Raurimu Spiral and stopping briefly in Palmerston North, Ohakune, National Park and Hamilton.  

“Pre Covid, rail touring was enjoying a resurgence throughout the world and, with the support of a promised $80 million of Government funding, KiwiRail was planning an ambitious upgrade of its scenic fleet and services,” Mr Miller says.

“The indefinite closure of New Zealand’s borders to international tourists, and the re-purposing by the Government of some of the proposed funding means that, for now, we are hibernating some of those plans and instead concentrating on designing viable timetables and services for the domestic market.

“New Zealanders can be assured that the scenery has not changed, and nor has the warmth of the welcome from KiwiRail’s staff who are eager to be back on track.

“Bookings are already open for our premier service, the TranzAlpine, running from Christchurch to Greymouth and same-day return, on Fridays, Saturdays, Sundays and Mondays. From September, customers will be able to enjoy the traditional Scenic class seats or pay extra to try a new Scenic-Plus class, which includes enhanced personal food and beverage service at your table.

“In spring, the Coastal Pacific will resume travelling from Christchurch to Picton each Tuesday, Wednesday, and Thursday morning, with a return service the same afternoon.

“Because the Northern Explorer has competition from airlines on the same route and is a much longer trip which is more difficult to make financially sustainable for KiwiRail, there has been speculation over its return.

“We’re pleased to announce that it’s coming back and we are currently working on the timetable, crewing and ticket prices and anticipate it resuming prior to the summer season.

“It looks like all New Zealanders will be holidaying at home this summer and as people plan their breaks, we urge them to demonstrate their support for environmentally friendly travel and choose to sit back and  connect with the landscape on their national rail network.

“We will monitor the popularity and profitability of the three scenic services over summer, while also looking at additional destinations and opportunities. 

“In addition to these scheduled services, we are looking to expand our fleet to offer enhanced charter services throughout the year.

“Despite uncertainties in the current market, KiwiRail is committed to playing a long-term, vital role in New Zealand’s tourism sector and we are looking forward to rolling out our fleet again.”

Bookings for the TranzAlpine are currently open from September 4 till the end of November, operating four-day weekends (Friday-Monday) and every day during the school holidays from Friday, September 25 to Monday October 12. Bookings for the TranzAlpine from December, and for the Coastal Pacific and Northern Explorer, will open in the next few weeks.

KiwiRail to Resume TranzAlpine Service on July 4th

KiwiRail is delighted to announce the return of its acclaimed TranzAlpine train service between Christchurch and Greymouth.

“I’m excited to be able to say that this award-winning train, which last ran on March 22 before the lockdown, will be back from July 4,” KiwiRail Group Chief Executive Greg Miller says.

 “We will resume with a weekend and school holiday timetable in July and August as KiwiRail continues to assess demand in a difficult season for tourism, with borders still closed to international visitors.

 “We’re conscious of how important this service is to the West Coast economy and we’re looking forward to bringing visitors to the Coast again, allowing them to see the snow-capped Southern Alps along the way.

“This will be an ideal time for New Zealand families to try something new, and together experience what Lonely Planet has described as one of the world’s 10 most amazing rail journeys.”

 During July and August, the TranzAlpine will run on weekends, departing Christchurch at 8.15am, and spending an hour in Greymouth before leaving at 2.05pm on Saturdays and Sundays. It will also run every day of the school holidays, July 6-17 inclusive, on the same timetable as weekends. KiwiRail hopes this will be an opportunity for families to share this unique experience. All fares will be changeable, fully refundable and available at the winter special rate of $75 per seat one way.

 Opening the TranzAlpine is KiwiRail’s priority for its scenic train services which, on average, have more overseas than domestic customers.  The company also operates the Coastal Pacific train between Picton and Christchurch, which does not run during winter, and the Northern Explorer between Auckland and Wellington which is not currently considered financially viable. No decisions have yet been made on the return of the Northern Explorer and Coastal Pacific.  KiwiRail also runs a commuter rail service between Palmerston North and Wellington, which resumed in late April.

 “Covid-19 has taken a heavy toll on tourism everywhere and unfortunately, like other tourism providers, KiwiRail and the communities we serve have suffered the impact,” says Mr Miller.

“We have utilised this downtime to look at exciting opportunities and options, including offering different classes of service onboard the TranzAlpine, beginning this spring.  We are confident we can serve the market at different levels with an enhanced service for those who want something extra, while still ensuring more accessible fares are also on offer.”

 The booking system at www.greatjourneysofnz.co.nz/tranzalpine/ is open now for TranzAlpine bookings in July and August, and bookings will open shortly for September and beyond. KiwiRail will be contacting those people who have bookings on services that have been cancelled. Those people already booked on the Northern Explorer – which has very light advanced bookings – will be given a 100 per cent refund or, if they prefer, a letter of credit.  People booked on the TranzAlpine on days when it will not now run can choose to be rebooked, or receive either a 100 per cent refund, or a letter of credit for a future booking.

In addition, anyone with an existing booking on the TranzAlpine for one of the winter weekends or the July school holidays will receive a refund of the difference between the higher fare they paid, and the new winter special rate of $75 per seat. For example, if you have already paid $150 for a ticket on the TranzAlpine, we’ll either refund you the $75 difference, or give you a voucher for $75 to spend onboard, or you could use the difference to buy another ticket for a friend or family member. 

 “We know that our customers all look forward to their trips with us, just as we look forward to serving them.  We apologise to affected customers for any inconvenience as we urgently consider how to make long-distance train journeys more attractive, more diverse and more financially sustainable.

 “Our Interislander ferries and scenic trains play a significant role in New Zealand’s tourism sector but 2020 has turned out to be difficult for all operators. We are focussed on our return, and on better days ahead.

 “We’re working hard on options and opportunities, are looking forward to making further announcements. In the meantime, we will welcome families and holidaymakers aboard the TranzAlpine from Saturday, July 4.”

Next Step for New Generation Interislander Ferries

KiwiRail is taking the next step to procure a new generation of Cook Strait ferries which will increase the capacity on this vital transport link, and increase its resilience.

A Request for Proposal (RFP) to find a preferred shipyard to build two new ships for the Interislander is being issued today, the next step in the procurement process. 

“The new ships will strengthen and enhance the vital transport link between the North and South Islands and represent a once-in-a-generation opportunity to transform the Cook Strait crossing,” Group Chief Executive Greg Miller says. The ferries are extensions of State Highway 1 and the Main Trunk Line across Cook Strait, linking road and rail networks between the two islands.

Currently, Interislander operates a fleet of three ferries, moving some 800,000 passengers and up to $14 billion worth of road and rail freight between the North and South Islands each year.

The $400 million contribution in Budget 2020 has enabled KiwiRail to go out to international tender to build the new ships, which are intended to arrive for service in 2024 and 2025. When the ferries are delivered, it will be over 25 years since New Zealand last introduced a brand-new purpose-built ferry to its fleet.

The $400 million towards the ferries and KiwiRail’s infrastructure at the ports in Wellington and Picton builds upon a $35 million-dollar investment in last year’s Budget for ferry design and procurement work.

The two new ferries will be technologically advanced, have significantly lower emissions, a greater carrying capacity – including rail wagons – and provide an enhanced visitor experience, Mr Miller says.

“On behalf of New Zealanders, we are grateful to the Government for enabling this acquisition,” says Mr Miller. “It is exciting to issue this RFP, to move the project forward and to find a shipyard to partner with KiwiRail to deliver the ships to our specifications, quality and timeline requirements.”

“Only overseas shipyards have the ability to build ferries of the size and standard needed for the Cook Strait. However, the project also involves new infrastructure including terminals, linkspans, and marshalling yards which will create numerous Kiwi jobs in Picton and Wellington. Community engagement has already begun in Picton for the proposed new terminal there. 

“We are engaging our Interislander staff in the design of the ferries to ensure the ships are not only great for passengers, but also for those who work on them.

“Our new ferries and the associated port infrastructure will provide greater resilience for this crucial link that unites our country and will serve New Zealand for the next generation and beyond.”