With new Cook Strait ferries arriving in 2029, Councillors voted today to move forward to public consultation on whether to finance Port Marlborough’s share of the Waitohi Ferry Redevelopment Project.

Submissions will open for one month from 17 April until 5pm on 19 May. Submitters can also choose to speak at hearings scheduled for 20 and 21 May.

“Our community fought for many years to keep the ferries here, and now Port Marlborough has successfully negotiated a 60-year commercial agreement to cement Picton’s role in the Cook Strait crossing,” said Mayor Nadine Taylor.

“Under this proposal, Port Marlborough would repay a loan of $110 million in full, including interest, as well as expecting to return an annual dividend to Council which would be used to benefit Marlborough’s residents and ratepayers. The provision of a financial guarantee and bond to the Port has been agreed as part of the overall package,” she said.

“We have been here before of course, with public consultation in 2021/2022 to finance Port Marlborough’s contribution towards the previous ferry redevelopment programme. Since then, the Government stopped the previous programme to replace the ageing Interislander fleet and progressed a revised approach, including different vessels and a new ownership model for infrastructure assets at Port Marlborough.”

“Under the Local Government Act, Council is required to consult the public once again. This consultation proposal is for Council to borrow the same $110 million through the Local Government Funding Agency at a favourable rate, to on-lend to Port Marlborough to pay for its share of the ferry infrastructure.”

“The Picton redevelopment is estimated at $531 million of the $1.867 billion Cook Strait Ferry Replacement Programme. This public consultation is whether or not the $110 million co-investment required of Port Marlborough will be backed by Council.”

Mayor Taylor said the Port’s business plan had been through a rigorous governance process.

“The financial principles and risk mitigations have been considered and approved by the boards of Port Marlborough and MDC Holdings, both of which have independent directors. The proposal has also been endorsed by Councillors,” she says.

“I encourage everyone with an interest in the project to read the statement of proposal document carefully, to attend one of the public meetings and to make a submission. Please take the opportunity to have your say,” Mayor Taylor said.

To make a submission, go to https://links.marlborough.govt.nz/haveyoursay using the online form, which is the quickest and easiest way to have your say. Please indicate on your submission form if you’d like to speak at a public hearing. Council will contact you and allocate a 10-minute speaking slot.

A hard copy of the submission form can be printed from the Council website, or collected from Council’s Blenheim or Picton offices, or Marlborough District Libraries. All hardcopies must be returned before 5pm on 19 May.

Public information meetings are being held on 13 May at the Port Marlborough Pavilion (1-3 pm and 6-8pm) and at Lansdowne Hub, Blenheim on 14 May (6-8pm).

Queries can be emailed to portconsultation@marlborough.govt.nz

A final decision will be made on 26 May at a full Council meeting.

For information about the Picton project, including the Interim Development Agreement signed between Port Marlborough and Ferry Holdings, visit portmarlborough.co.nz/waitohi-ferry-redevelopment-project/

For information about the Cook Strait Ferry Replacement Programme, including the Wellington side of the project, visit www.ferryholdings.co.nz

Ferry Holdings Ltd (FHL) was established in March 2025 to lead the procurement and contractual negotiations with shipyards, ports, and other parties to enable the affordable delivery of two Cook Strait ferries.

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