Katherine Rich appointed to Ferry Holdings board

Tuesday, 11 March 2025

Katherine Rich is a former National Party MP who was chief executive of New Zealand Food & Grocery Council before leading Business NZ.

Business NZ chief executive Katherine Rich has been appointed to the board of Ferry Holdings, which will manage the contentious procurement of new Cook Strait ferries.

Rail Minister Winston Peters announced on Tuesday that Rich and Captain Iain MacLeod would be bringing “pragmatic, practical” experience to the Crown company, bringing its total board members to five.

“The new board is already hard at work, with shipyard engagements continuing, alternative proposals being assessed, and collaborative engagement underway with KiwiRail, Port Marlborough and CentrePort on the infrastructure considerations,” Peters said.

Peters said Rich, a former National Party MP who was chief executive of New Zealand Food & Grocery Council before leading Business NZ, brought “knowledge of what customers need from the New Zealand supply chain”.

Rail Minister Winston Peters was given until the end of March to produce an alternative plan.

MacLeod, a career mariner and ship master, would bring experience from the shipping industry.

“This issue has always been bigger than replacing ferries and building infrastructure – it’s about a North-South connection for New Zealanders and their businesses, and the safe and reliable driving and berthing of ships,” Peters said.

“As a board, this team is focussed on the most efficient path to connect the strait.”

Peters in February appointed the first tranche of directors to Ferry Holdings Limited.

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.

The Government’s planned acquisition of new Cook Strait ferries has been contentious.

In December 2023, Finance Minister Nicola Willis cancelled the prior Labour government’s iRex project to replace the ageing InterIslander ferries with two large “rail-enabled” ferries, due to the escalating cost of port-side infrastructure bringing the total project cost to $3 billion. Such ferries allow for rail freight to roll on-and-off the vessel.

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.

But, due to Cabinet disagreement over the decision, Peters was appointed Rail Minister and given until the end of March to produce an alternative 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.

The tender has now closed, and Peters on Tuesday said he would soon have answers about which shipbuilding firm the Government may go with. There has been interest from Hyundai Mipo, and potentially Finnish firms.