KiwiRail Concludes IReX Ferry Replacement Project

The iReX ferry project has been officially concluded, following the completion of negotiations to exit the ferry contracts.

KiwiRail Chief Financial Officer Jason Dale says KiwiRail last night effected an agreement with Hyundai Mipo Dockyard (HMD) for full and final settlement to exit the contracts for two large rail-enabled ferries that were signed in 2021.

“After constructive negotiations we have concluded a settlement agreement with HMD for a final amount of $144 million. Including previous payments, this brings the total paid to HMD to $222 million and the final cost for the entire iReX project to $671 million.”

“KiwiRail remains focused on working with Ferry Holdings Limited and the port companies to deliver two new rail-enabled ferries and the required infrastructure upgrades in Wellington and Picton by 2029. We’re looking forward to ensuring the safe and smooth transition of the new fleet into service for our people and customers when the time comes.”

The $671 million cost is made up of:

• $449 million spent on landside infrastructure and project management costs to December 2023, as well as project wind-down costs.
• The $222 million paid to HMD includes a previous deposit and a part-settlement payment.

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