Road Freight Group Backs Government's Decision to Deny $1.47bn for New Ferries, Calls for Affordable Alternative

The New Zealand government's decision not to grant KiwiRail $1.47bn for the construction of two new ferries and terminals is the correct one, says road freight peak body Ia Ara Aotearoa Transporting New Zealand.

While acknowledging the need to improve resilience and capacity for the ferry service, the organisation's interim CEO, Dom Kalasih, believes that all stakeholders should work with KiwiRail to find an affordable alternative.

He argues that the current ageing ferries are unreliable, causing enormous damage to the freight sector, and that clarity is needed on how resilient Cook Strait services will be ensured.

Freight carried across the Strait amounts to between $15-20bn each year, with growth of 1.4% annually, meaning that delays are costly.

Kalasih states that the Picton and Wellington port facilities are the main reason for the budget blowout, rather than the ships under construction in Korea.