Why are NZ spy agencies involved in buying China-made Cook Strait ferries?

Friday, 17 October 2025

It's been confirmed that NZ's spy agencies will play a role in the procurement of two new ferries from a Chinese state-owned ship builder. But Minister Judith Collins won't say what that role entailed.

The state-owned Chinese company chosen to build Interislander’s two new ferries also builds gear for China’s military. Judith Collins says NZ spy agencies will play a role in the procurement process - although she won’t say what role.

The shipyard that’s been awarded the contract to build two rail-enabled ferries for the government also makes military vessels and components for China’s People’s Liberation Army Navy (PLA-N).

Guangzhou Shipyard International (GSI) was announced as the builder by Rail Minister Winston Peters earlier this week. It’s sometimes known as COMAC and it’s owned by the China State Shipbuilding Corporation (CSSC), a powerhouse in China’s military landscape.

It was chosen after a five-month procurement process that saw six shipbuilders shortlisted by the Government. On September 3, Peters announced that it had secured the preferred supplier, but it wasn’t until October 14 that GSI was named publicly.

It’s since been revealed by Judith Collins - who holds the ministerial portfolios of Defence and responsibilities for the two spy agencies GCSB and SIS - that those agencies will play a role in the procurement.

“The security agencies will be included in the procurement process as they normally are in matters like this,” she said.

“There is actually a requirement for them to be involved and they’ll obviously do their job. Clearly I can’t say exactly what that is but they will do their job.”

China’s third aircraft carrier at Jiangnan Shipyard, a subsidiary of China State Shipbuilding Corporation (CSSC). That company owns GSI, which has won the contract to build two new Cook Strait ferries for the NZ government.

GSI has been around since 1954, and its website features numerous photos of Chinese military vessels. Its homepage also features this motto: “Inheriting the military-industrial quality in an unbroken line.”

It’s made a handful of military vessels for the PLA-N, including the Type 02 torpedo boat and Type 55A high-speed gunboat.

The company also constructed an ocean-going hospital vessel for the PLA-N, called the Peace Ark and a large comprehensive supply vessel, the Hulun Lake.

Specialised kit-like marine elevators are also GSI’s speciality, alongside commercial vessels like ferries.

Is Collins concerned about GSI’s links with China’s military? “All I can really say on it is that the security agencies will be involved in the procurement process.”

A fortnight ago, Collins launched an initiative aimed to boost the domestic defence industry where it was revealed Western countries refuse to allow Chinese-made componentry in defence equipment.

However, she doesn’t have concerns about Chinese componentry being used in a vital piece of infrastructure like a Cook Strait ferry.

Judith Collins oepning the new hangar for the RNZAF’s Poseidon P-8 aircraft, which are made by Boeing. Boeing also makes commerical aircraft.

“Ferries are not quite the same as war machines,” Collins said.

When Peters was asked by media what the spy agencies’ role in the procurement process was, he replied: “You guys are talking drivel.”

When told that Judith Collins had actually confirmed that spy agencies will be involved, Peters brushed it off.

“You can ask her, but I’m not worried or concerned about it. I’m just a realist. I fly on planes that are built by military people as well. Air New Zealand’s flying them. So how come this is different?

The former PM says the decision to attend the mammoth Victory Day Parade at Tienanmen Square was not an easy one.

“Are you flying Air New Zealand? They come from Boeing and Boeing makes military planes as well. See the contrast?,” he continued.

When it was pointed out that Boeing and Airbus are Western manufacturers and GSI is building naval vessels for the Chinese military, Peters still wasn’t worried.

“Get with the real world. China has a defence industry, yes. It makes boats and it makes ships and it builds aircraft. They’re all part of the defence industry. This is the real world we live in. What do you suggest we do?”

Both Collins and Peters were asked whether the Chinese government or military could remotely disable the ferries if they wanted.

“Every part of this purchase will be totally inspected by New Zealanders before it goes into commission. Every part,” Peters responded.

“I’m not going to do either hyperventilation or hyperbole,” Collins said.

A spokesperson for the GCSB and SIS said the process is outlined on the Government’s procurement website.

“National security considerations are part of the government procurement process, and the intelligence agencies support these processes as required,” the spokesperson said.