2026 Consultation to finance Port Marlborough’s share of the Waitohi Ferry Redevelopment Project

Overview

The Cook Strait Ferry Replacement Programme is the Government’s current programme to replace the ageing Interislander fleet by 2029. The Waitohi Ferry Redevelopment Project supports the infrastructure in Picton required for the new ships. This public consultation is whether or not Council will back the $110 million co-investment with the Government that’s required of Port Marlborough. Under the Local Government Act 2002, Council is required to consider the views and preferences of the community before making significant decisions such as these.

Background

In 2021-22, the public was consulted on a proposal for Council to lend $110 million to Port Marlborough to support ferry infrastructure for new, larger Cook Strait ferries. Council would raise debt through the Local Government Funding Agency at below-market rates and on-lend to Port Marlborough, a Council-owned company. While the public supported this decision to raise debt and loan $110 million to the Port, the Government’s ferry replacement programme did not proceed and the associated work for this loan was not undertaken.

In 2025, the Government established Ferry Holdings Limited to lead delivery of a revised Cook Strait ferry programme, bringing together vessel design, port infrastructure, and national transport requirements under a single entity. Given the changes to the previous programme, including vessel size and a new ownership model for port infrastructure, Council must consult the Marlborough community again under the Local Government Act. This consultation is again asking the community whether Council should raise low-interest debt and on-lend $110 million to Port Marlborough, subject to a financial guarantee and bond. This debt and subsequent loan would be at no cost to ratepayers. The Port would pay back the loan, including interest, through the Port’s operating income.

The Picton redevelopment is estimated at $531 million of the $1.867 billion Cook Strait Ferry Replacement Programme. This public consultation is whether or not the Port’s $110 million share will be backed by Council. This Port contribution would be capped at $110 million for co-ownership of Port assets with the Government, including a new wharf, seawall and adjacent civil works. 

Council encourages you to read the consultation document and have your say from 17 April to 19 May. Please indicate on your submission form if you’d like to speak at a public hearing 20-21 May. Council will contact you to arrange a 10-minute speaking slot.

The public is encouraged to read the Statement of Proposal carefully, attend a public meeting and make a submission. A full Council paper is available, with the Statement of Proposal and Council’s wider assessment, on the Council’s website to assist you in making a submission.

Go to the Statement of Proposal

Go to the 16 April Council agenda

What happens next

The consultation closes at 5pm on 19 May. Submissions will be heard 20-21 May. Please indicate in your submission if you’d like to speak at one of these public hearings. Council will contact you to allocate a 10-minute speaking slot.

Hearing of Submissions Ferry Consultation Document 20 May 2026 Agenda

Following Council deliberations from 22 to 25 May on public feedback, full Council will make a decision on 26 May.