Ferry terminal timeline strained as government rejects ‘extreme’ risk warnings
Monday, 2 February 2026
The timeline to replace Wellington’s ageing ferry terminal infrastructure is under strain, with internal documents revealing a widening gap between a government deadline and construction reality – even as Rail Minister Winston Peters insists warnings of “extreme” financial risk are outdated.
Despite the Government targeting 2029 for the arrival of two new Cook Strait ferries, CentrePort has advised its shareholders – Greater Wellington Regional Council (GWRC) and Horizons Regional Council – that it does not expect to seek final approval to fund the project until late this year.
That leaves a construction window of roughly two and a half years for major marine infrastructure, including wharves and seawalls required to berth the new vessels.
Documents obtained by The Post from WRC Holdings Ltd, the council-owned company that oversees GWRC’s commercial assets, show the ferry terminal project was rated an “extreme” financial risk, with residual risk remaining “very high” across 2024 and 2025.
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The risk register warned that delays in commercial agreements - which were expected to be inked last year - and funding decisions could jeopardise delivery ahead of the ferries’ arrival.
Peters rejected the suggestion the project remains high-risk, saying the documents reflect a point-in-time assessment that no longer applies. He even hinted the ferries could be delivered early.
“The ferry replacement programme we secured is a prudent and restrained exercise in replacing what needs replacing,” Peters said in a statement.
The delay stems largely from unresolved negotiations with the Government’s newly created ferry delivery entity, Ferry Holdings Ltd, which was established in April 2025 after the coalition scrapped the previous iReX mega-project.
As of late May 2025, CentrePort advised councillors there remained “significant uncertainty in regards to commercial terms”, despite having clarity on vessel size and type.
Those negotiations, covering port fees, asset use, and long-term revenue arrangements, are not expected to be finalised until later this year.
Peters said: “Commercial negotiations will be settled in mid-2026 on the port fees, which will determine the revenue each port and the taxpayer gets from its investment in new port assets,” he said.
The agreements are central to whether CentrePort can borrow to fund the infrastructure on commercial terms. Lenders typically require confidence that future revenue will be sufficient to service debt and meet return thresholds.
Peters would not confirm whether agreement in principle has been reached with KiwiRail or Strait Shipping on future port fees and whether these fees would rise.
CentrePort and GWRC stressed the terminal will be funded from the port’s own balance sheet, not directly by councils or ratepayers.
“CentrePort has an allocated budget for the ferry terminal development in Wellington,” said GWRC’s group manager of strategy Luke Troy. “This budget is funded from the CentrePort balance sheet and does not require shareholder funding. As such, an impact on Council borrowings and credit rating is not expected.”
But funding infrastructure through the balance sheet typically involves borrowing and if projected revenues fall short, that risk ultimately sits with the port’s owners.
Earlier board papers warned CentrePort may need to seek shareholder approval for “significantly higher borrowing” than previously planned, potentially requiring a debt guarantee from GWRC.
Peters dismissed ratepayer exposure, saying: “Zero ratepayer funds will be paid.”
“Port Marlborough’s contributions are coming from a loan from the Local Government Funding Agency while CentrePort is funding its contribution directly and both will then earn revenue from the Interislander through their port fees.”
However, CentrePort has also warned that using its debt capacity for the ferry terminal would restrict other growth and renewal projects to whatever free cashflow remains.
A request from The Post for details of deferred or de-prioritised port projects was not answered.
The compressed construction window has echoes of Tasmania’s recent ferry debacle, where a new vessel sat idle overseas for months because port infrastructure was not ready. That crisis triggered the resignation of transport minister Michael Ferguson and high-ranking executives.
Peters has said he is determined to avoid a similar outcome.
After meeting shipbuilders in Guangzhou, he said officials were told that if infrastructure could be delivered earlier than 2029, the ferries could also arrive earlier.
“We are going to drive the infrastructure to completion with speed,” he said.
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