KiwiRail recommended build-and-sell option to resolve $551m ferry contract

KiwiRail recommended building and selling the rail-enabled ferries it ordered from Hyundai. (Image: KiwiRail)

Mon, 15 Jul 2024

KiwiRail recommended to ministers that building and then selling the rail-enabled ferries it had on order with a South Korean shipyard was its preferred option and the lowest-cost solution for taxpayers, BusinessDesk understands.The coalition Government declined to provide further funding for the Interislander replacement project (iReX) last December after costs blew out from $1.45 billion to around $3b, forcing the state-owned ferry and rail operator to wind down the project.In February, KiwiRail confirmed it had initiated cancellation discuss...

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