$110m loan decision for Picton port upgrade heads to council table
Thursday, 16 April 2026
Marlborough District Council will vote on Thursday on whether to put plans to borrow $110 million to upgrade Picton’s port to the public.
Ferry Holding Ltd, the state-owned company that has to deliver Interislander’s new ships and ports, has have been working on agreements with Wellington’s CentrePort and Picton’s Port Marlborough.
In Picton a $585 million agreement has been reached, which would include a new wharf, a new bridge for vehicles going onto the ferries and fixing infrastructure that is wearing out.
That money would include $110 million from the council if approved, which would only go to core port infrastructure like the wharf - not ferry specific assets.
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It would require the council to borrow the money, which would then be given to Port Marlborough, sparking the need for community consultation.
If councillors vote down the proposal at Thursday’s extraordinary meeting, their officers warn there would be a risk of Cook Strait ferry services moving somewhere else, alongside the need for renegotiations with Ferry Holdings and a higher cost of debt for Port Marlborough.
If Thursday’s vote goes through, public consultation will get under way through to May 19, with a final decision on May 26.
A report prepared for Thursday’s meeting said ratepayers would benefit from the upgraded port, as it would deliver increased returns to the council.
“Higher dividends to council could reduce future rates increases.”
The upgrades would also replace ageing port infrastructure and support Marlborough’s role as a nationally significant transport gateway, the report said.
Picton’s infrastructure was originally designed for the Aramoana, the country’s first roll-on roll-off ferry, in 1962.
The deal would be the second of its kind for the council after the Government pulled the plug on the iReX mega ferries started under Labour.
Wellington’s CentrePort told The Post it could pay for its deal with Ferry Holdings within its own budget without needing outside help, but would not say how much that would cost the company due to commercial sensitivities.
“With an interim development agreement signed with Ferry Holdings last year, CentrePort is focussed on continuing detailed negotiations associated with the project as well as progressing site preparation work.
“CentrePort is continuing to work in line with the timelines required, to deliver the necessary infrastructure for the arrival of the first vessel in 2029.”
Rail Minister Winston Peters said the Government would approve commercial port agreements by mid-2026.