KiwiRail settles with Hyundai for $144m, final iReX cost hits $671m

KiwiRail contracted with Hyundai Mipo Dockyard to build two large rail-enabled ferries in 2021. (Image: Supplied)

Fri, 15 Aug 2025

KiwiRail has reached a $144 million settlement with Hyundai Mipo Dockyard, taking the final cost of the cancelled Interislander replacement project to $671m.The state-owned rail and ferry operator entered into an agreement with the South Korean shipbuilder on Thursday night, ending more than a year of negotiations to exit a $551m contract for two large rail-enabled ships.According to information provided by KiwiRail chief financial officer Jason Dale, the full and final settlement was on top of a previous deposit and partial settlement pay...

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