Winston Peters signals KiwiRail likely to run Interislander into the future
Thursday, 14 May 2026
Rail Minister Winston Peters is indicating a “favourable outcome” for KiwiRail in its pursuit to continue running the Interislander beyond 2029.
In three years time, the state-owned Cook Strait service is set to get two new rail-enabled ships and upgraded port infrastructure to go with them.
The Interislander is one of New Zealand’s most well-known brands and has been operated by the country’s rail company for six decades.
Last month The Post reported KiwiRail wanted to run it for another 60 years, but the Government would not commit to it.
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Peters has since told The Post that the Interislander will remain taxpayer-owned, KiwiRail is doing a good job and that operator decisions will not be taken till port agreements are signed mid this year.
“All of those statements put together should indicate a favourable outcome for KiwiRail remaining the operator but getting the order right of decision-making matters for taxpayers who are our priority.”
He said “people with business experience accept that sign on occurs once the costs of running a business are finalised”.
The minister then took aim at the previous Labour Government’s iReX mega ferry proposal, which was stopped by Finance Minister Nicola Willis in 2023.
“Only fools rush in headfirst without specifying the costs—as happened when iReX was approved by Tangi Utikere’s colleagues in Labour in June 2021 before it blew out by billions.”
Labour’s transport spokesperson Tangi Utikere told The Post if the Government “hadn't blown billions on the ferries we'd be in a much more stable position now”.
“As opposed to the current scenario Nicola Willis created which Winston Peters has been called in to save,” he said.
“Meanwhile, Kiwis are still having to wait for new ferries, and rely on an ageing fleet.”
Peters did support the initial investment of $400 million into iReX in 2020.
Work on port agreements for the new ferries was under way with plans for a $110m loan to upgrade Picton’s port now out for public consultation.
Wellington’s CentrePort told The Post it could pay for its deal within its own budget without needing outside help, but would not say how much that would cost the company due to commercial sensitivities.