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Ferry Holdings has selected Guangzhou shipyard to construct new hybrid-powered ropax ferries for the Cook Strait, following the cancellation of a contract with Hyundai Mipo due to escalating costs reaching NZ$3.1 billion. The new vessels will utilize diesel-electric and battery propulsion, with designs accommodating future fuels such as methanol or hydrogen.

The decision to build smaller ferries aligns with existing port infrastructure, avoiding unnecessary upgrades. The project is vital for national logistics, as the ferries are key for transporting goods and tourists between New Zealand's islands. The anticipated delivery is set for 2029.