Workers left in limbo after Government abandons $3b ferry project

Thursday, 14 December 2023

Picton has been shocked by the halt of iReX ferry development project. Work continues behind the temporary terminal.

The Government’s decision to abandon a $3b plan to upgrade inter-island ferries has left the workers either side of Cook Strait in limbo.

The Picton construction work for the now-canned Inter-Island Resilient Connection (iReX) would have required 200 to 300 workers - some of whom had already started to move to Marlborough. Workers expecting jobs in Wellington are also wondering their future.

“The people are in place, I have heard multiple stories of people moving from all over and relocating their family, suddenly they have no job,” said Marlborough Chamber of Commerce chief executive Pete Coldwell.

Upgrades to the Wellington ferry terminal area.

The project involved building new terminals in Picton and Wellington and the purchase of two new mega ferries for KiwiRail’s Interislander service.

Coldwell said he could not speculate on how many jobs would be lost but it would be significant.

“The honest answer is that after Christmas we will have a better idea. Obviously it is going to have a significant impact on jobs.”

He is hoping the Government can quickly come up with a a new option to save the jobs.

The Picton upgrade was to have included a new Interislander ferry terminal and a new wharf, improved marshalling areas and transport connections.

Already a temporary ferry terminal had opened in June and work was about to start on a $20m over-bridge, as well as piling, for the new terminal.

Marlborough mayor Nadine Taylor said that the loss of jobs was a concern and the project would have given the town a major fillip.

“It was new money and new jobs for the area and it would have given the economy a boost.”

In Wellington, Amalgamated Workers Union already had members who were gearing up for work on the Wellington project are but that was now up in the air.

'Nothing surprises us with this lot,' said Rob Popata from AWU.

The Wellington redevelopment would have included a new wharf and a new terminal building to cater for the new ferries.

Popata said the decision also created a difficult situation with contracts that have already be agreed to.

'The challenge for the Government is that if they've already gone into the contract, those construction companies are going to say it's going to cost you some money to get out of it because we've got workers we've employed on the basis that we're going to do this contract.'

He said there could be flow-on effects for labour markets and immigration. 'A lot of those workers who were brought in were immigrants.'

In Picton, contractors had contacted real estate firms, backpackers and motels, looking for long term accommodation.

Summit Real Estate manager Dianna Shulz was aware that some people had already moved to Picton expecting work for months, if not years. “Some of those people will now find themselves in a difficult position.”

A project to build a new Picton wharf and build two new Cook Strait ferries has been abandoned by the new coalition government. The future of workers, who had relocated to Picton, is now unclear.

Barbara Speedy, who runs an art gallery in Picton and is a member of the local business association, said the new workers would have been a boon for local cafes and businesses.

“In terms of employment, I know It will be very disruptive to people’s lives if they have made a commitment to move here for years.”

Taylor was also concerned about the future of in the inter-island service, which effectively operates as a section of State Highway 1.

“We have to have a safe and reliable passenger service.”

KiwiRail chief executive Peter Reidy said the board of the state-owned enterprise would work with the Government on all options.

On Thursday, Reidy said KiwiRail was currently working through the implications for staff.

“Our first priority is people. Since yesterday’s announcement we are working with contactors and all of our staff to make sure everyone is okay,” he said in a statement.

“We’re not going to walk away from the work we have started in Waitohi Picton and Kaiwharawhara. We are developing a plan to ensure things are in good shape during the summer peak so the ferries and Picton town can operate efficiently.

“We are also developing next steps for our work in the two terminals and will keep our partners and the community informed as things progress.”