Marlborough Community Consulted on $110m Loan for Picton Ferry Upgrade

Marlborough District Council is consulting the public on a proposal to borrow $110m to fund Port Marlborough's share of the revised Cook Strait ferry redevelopment.

By: AXL Media

Published: Apr 16, 2026, 4:10 AM EDT

Source: RNZ Pacific

A Revised Funding Model

Following the cancellation of the previous "iReX" upgrades, the government has progressed a new approach involving different vessels and an altered ownership model for infrastructure assets. Under the new proposal, the Marlborough District Council would borrow $110 million from the Local Government Funding Agency (LGFA) at a favorable interest rate. This money would then be on-lent to Port Marlborough.

Marlborough Mayor Nadine Taylor emphasized that the port would be responsible for repaying the loan and interest in full, while simultaneously maintaining its annual dividend payments to the council. This structure is intended to insulate ratepayers from the direct costs of the debt while leveraging the council’s ability to secure lower interest rates.

Securing Picton’s Maritime Future

The redevelopment is supported by a 60-year commercial agreement that cements Picton’s role as the primary South Island hub for the Cook Strait crossing. Mayor Taylor noted that the community has fought for decades to keep the ferries in Picton, and this infrastructure investment is seen as essential to support the two new ships recently commissioned from Guangzhou Shipyard International.

"The port’s business plan has been through a rigorous governance process," Taylor said, adding that the financial principles and risk mitigations have been approved by the boards of Port Marlborough and MDC Holdings, both of which include independent directors.