The New Zealand Government has confirmed that Guangzhou Shipyard International (GSI) will build two new Cook Strait ferries.

Rail Minister Winston Peters announced today that GSI, the largest modern integrated shipbuilding enterprise in Southern China, has been selected through Ferry Holdings Limited, the government’s procurement company.

Founded in 1954, GSI is listed on both the Hong Kong and Shanghai stock exchanges.

“We want the best deal possible for New Zealand taxpayers,” said Mr Peters. “A shipbuilder with GSI’s capability and capacity shows the strength of our no-nonsense ferry replacement programme.”

Negotiations between Ferry Holdings and GSI are ongoing, with final details, including port agreements with CentrePort and Port Marlborough, yet to be confirmed.

However, key project elements have been secured, including a fixed price, delivery by 2029, and compliance with New Zealand’s specifications for two 200-metre ferries capable of carrying 1,500 passengers and both rail and road freight.

An official announcement detailing the full agreement is expected before the end of the year.

Mr Peters reiterated that the current programme will save taxpayers billions compared to the previously cancelled iReX project.