Winston Peters to meet Hyundai Mipo in South Korea

Friday, 28 February 2025

After a year of delays, the government confirmed plans to buy two new Cook Strait ferries but offered few details on their costs, rail compatibility, or who's building them. Winston Peters, as Minister for Rail, faces pressure to deliver answers.

Foreign Minister Winston Peters is expected to meet ship-builder Hyundai Mipo in South Korea, as he seeks a better Cook Strait ferry deal.

Peters lands in South Korea on Friday evening, NZ Time, for meetings including with Korean foreign minister Cho Tae-yul to end a trip across Saudi Arabia, China, and Mongolia.

While Peters has declined to confirm he would meet Hyundai Mipo, which was contracted to build two new Cook Strait ferries the Government cancelled in December 2023, the South Korean embassy in Wellington has confirmed it expects a meeting.

Kangwook Jeon, first secretary at the embassy, told The Post that Peters would be meeting representatives of Hyundai Mipo during his visit.

“We appreciate that the economic opportunities are continuing between our two countries.”

But the embassy did not know whether the ship building firm was submitting to the current tender process the Government has undertaken to replace the cancelled project.

Peters became Rail Minister in December after he claimed he could find a better deal for the Government than a “viable proposition” produced by Finance Minister Nicola Willis.

Willis cancelled the prior Hyundai Mipo contract for two large rail-enabled ferries in December 2023, due to the cost of port-side infrastructure blowing out. KiwiRail remains in commercial negotiations with the shipbuilder over breaking the contract.

The finance minister in 2024 put together a funding “envelope” for two 200 metre “rail-compatible” ferries, meaning rail freight would be trucked off the rail-line and onto the ferry for the crossing, and then trucked back onto rail.

Cabinet gave Peters until the end of March to produce an alternate plan. In February, a tender process was opened and the Government hired BRS Shipbrokers to seek out shipyards that might be interested in the project.

Peters’ officials have previously said the visit to South Korea is not related to the exiting of the iRex contract.

Speaking before leaving on the trip last week, Peters refused to confirm he might meet Hyundai Mipo.

“We don't talk about matters like that before we've had the politeness to, first of all, talk to them.”

Peters returns to New Zealand at the weekend.

A Treasury spokesperson said there had been “encouraging” engagement with the tender process from international shipyards.

Cabinet would make decisions late March, after the tender applications were considered by Treasury and the board of the Crown-owned company Ferry Holdings Limited.

Peters earlier this month appointed directors to Ferry Holdings Limited, which will manage the procurement of the two new ferries.

Chris Mackenzie, who helped negotiate the Government buy-back of rail assets in the 2000s, was appointed chairperson. Heather Simpson, a former chief of staff to Helen Clark, was appointed deputy chairperson, and Greg Lowe, a former Beca chief executive, a director.