Samsung Heavy to Build Six Evergreen Boxships Giants

SHI, Evergreen signing ceremony

Image Courtesy: Samsung Heavy Industries

South Korea’s Samsung Heavy Industries has signed shipbuilding deals for Evergreen’s latest ultra-large containerships, valued at a total of USD 920 million.

The order was placed for the construction of six of the world’s largest container ships, with a capacity of 23,000 TEUs, by May 2022.

The giants will feature a length of 400 meters and a width of 61.5 meters. They will be capable of transporting 23,764 twenty-foot containers at once.

The order exceeds Samsung Heavy’s previous ultra-large container ship, that can transport 23,756 containers, delivered to Mediterranean Shipping Company (MSC) in July 2019.

Samsung Heavy said the vessels will be equipped with its latest smart ship technologies for low fuel consumption and safe sailing.

“The demand for ultra-large containerships is expected to continue as global ship owners have reduced cost through an economy of scale,” an SHI official said, adding that the shipbuilder is therefore expected to “keep leading the ultra-large boxships market.”

The latest contract has pushed Samsung Heavy’s orderbook to USD 5.1 billion so far this year. It now includes 35 vessels, meeting 65 percent of the shipbuilder’s annual target of USD 7.8 billion.

In September 2019, the Taiwanese shipping major Evergreen confirmed its plans to build a total of ten 23,000 TEU containerships at three shipyards.

Apart from the units ordered from SHI, the company said that China’s Jiangnan Shipyard and Hudong Zhonghua Shipbuilding would construct another two ships each. The value of the entire order stands between USD 1.4 billion and USD 1.6 billion.

World Maritime News Staff

Biggest cruise season looms, but NZ hasn’t signed global treaty to reduce its ship emissions

A record 123 cruise ships are set to visit Wellington this year, but New Zealand isn’t yet contributing to reducing global ship emissions. 

New Zealand and Mexico are the only two countries in the OECD not signed to an international agreement requiring ships to run on cleaner fuel. 

Associate Minister for Transport Julie Anne Genter said  New Zealand was a party to MARPOL, (The International Convention for the Prevention of Pollution from Ships) however previous governments had chosen not to sign up to Annex VI which regulated shipping emissions affecting human health and the climate.  

Officials had investigated “the pros and cons” of signing up to Annex VI and the Ministry of Transport had recently finished consultation.

“I expect to take a recommendation to Cabinet on this matter before the end of this year.”

Last year, emissions from a single cruise ship visit in Wellington were the equivalent to more than  200,000 extra cars per day, according to Emission Impossible director Dr Gerda Kuschel. 

Her calculation found that was nearly more emissions than all of Wellington’s cars in one day.

The Annex VI will be in place for those nations signed to the agreement, currently 91,  from January 1, 2020. 

The type of fuel burned by diesel engines in ships typically results in higher amount of various pollutant gases and ultra-fine particle emissions, compared to car engines.
JOHN BISSET/STUFFThe type of fuel burned by diesel engines in ships typically results in higher amount of various pollutant gases and ultra-fine particle emissions, compared to car engines.

It would mean all cruise ships visiting New Zealand ports would need to meet much tighter requirements, she said. 

“That might mean that although more ships come here, the local impact might be much reduced due to lower sulphur fuels.” 

WellingtonNZ General Manager David Perks said it was “a very interesting time” for how to balance economic growth with climate change. 

New Zealand is one of just two countries in the OECD not signed to an international agreement requiring ships to run on cleaner fuel.
MONIQUE FORD/STUFFNew Zealand is one of just two countries in the OECD not signed to an international agreement requiring ships to run on cleaner fuel.

“It’s crucial that the tourism industry becomes leaders in sustainability as people become increasingly conscious of the emissions their travel produces,” he said. 

“They want to know change is being made in the destinations they visit to make it worthwhile.”  

MOT International Connections manager Tom Forster said cabinet would be receiving advice on potential Annex VI accession. 

“A decision to accede would be followed by a treaty examination, including a select committee process. 

Shipping has been highlighted by the Ministry for the Environment as an emerging issue, but the country has no regulation on air quality from ships.
KEVIN STENT/STUFFShipping has been highlighted by the Ministry for the Environment as an emerging issue, but the country has no regulation on air quality from ships.

“This will provide interested parties with a further opportunity to express their views.” 

The 123-ship season beats 110 in 2019 and 82 in 2018. In 2007-2008 just 38 cruise ships berthed in Wellington. 

Shipping has been highlighted by the Ministry for the Environment as an emerging issue, but the country has no regulation on air quality from ships.

The Marlborough District Council has previously said there would be strong benefits for the region – in particular Picton and the Marlborough Sounds – if New Zealand signed the global agreement.

StraitNZ CEO Louise Struthers said Bluebridge supported the signing of the treaty, and would be able to comply with any new requirements within its existing fleet. 

Interislander general manager Walter Rushbrook said KiwiRail made a submission in favour of adopting Annex VI. 

Kiwirail is in the process of replacing its ferry fleet with two new larger ferries, which will be capable of complying with international standards, including the Annex VI. 

“Having long-term certainty of fuel and emissions regulations is necessary as we embark on a major fleet investment programme.” 


Moana Chief – media release from Pacifica

Pacifica are proud to announce that our new vessel Moana Chief, sailed into Auckland this week on her delivery voyage to begin a new life dedicated to the NZ coast.
We plan to phase her into service this week commencing with voyage 4132 departing Auckland Friday 20 September which will coincide with the departure of Spirit of Canterbury.
The Moana Chief brings over 50% greater capacity than SPOC (1700 teu Vs 1100 teu) and will operate on the same fixed day weekly schedule ;
rotating Auckland →Lyttleton →Nelson →Tauranga .
Pacifica’s introduction of additional capacity is a significant investment and commitment from our parent company Swire , and is a response to the growing demand for reliable access to the “Blue Highway” connecting key North & South Island ports .

As N.Z’s only dedicated weekly coastal carrier Pacifica are uniquely placed to offer a sustainable year-round solution for your wharf/wharf or door/door FCL shipments.
We also take this opportunity to pay tribute to the mighty SPOC for years of dependable service ; she never missed a beat during the hundreds of voyages around N.Z and we wish her continued smooth sailings in her next deployment.

Port of Tauranga partners with Waikato-Tainui owned Ruakura inland port

Tainui Holdings Group CEO Chris Joblin said the agreement with Port of Tauranga is a key step.
TOM LEE/STUFFTainui Holdings Group CEO Chris Joblin said the agreement with Port of Tauranga is a key step.

Developers of the Ruakura inland port in Hamilton have taken a big step forward by signing a 30-year partnership with the Port of Tauranga.

Port of Tauranga and the Tainui Group Holdings subsidiary, Port Ruakura LP, announced the agreement on Thursday.

Cargo shipped by a rail between Auckland and Tauranga will be handled at Ruakura and will meet the future needs of the company, Port of Tauranga chief executive Mark Cairns said.

An artist's impression of the full Ruakura Inland Port development.
SUPPLIEDAn artist’s impression of the full Ruakura Inland Port development.

“The Ruakura development will provide a highly efficient rail hub in the Waikato by utilising our existing train services linking our MetroPort Auckland inland freight hub with Port of Tauranga.”

Port of Tauranga will have priority rail slots at the Ruakura facility with Port Ruakura LP providing the infrastructure including a rail siding, hardstand and cargo storage.

Waikato-based importers and exporters will have direct access to international shipping services at Tauranga.

The 480-hectare Ruakura estate has 192 hectares earmarked for logistics and industrial uses and the planned 30 hectare inland port.

Tainui Group Holdings chief executive Chris Joblin said the initial 30-year agreement is a key step toward unlocking the economic golden triangle of Auckland, Hamilton and Tauranga for importers and exporters.

“The agreement will see Port of Tauranga trains initially call at Ruakura four times daily and this is likely to grow,” Joblin said. “This service will underpin the significant supply chain savings we have been modelling with prospective customers and tenants of Ruakura.”

About half of all freight volumes in New Zealand occur in the golden triangle and container volumes are forecast to grow 60 per cent by 2042. Tauranga handles the biggest container ships to visit New Zealand. 

KiwiRail operates up to 86 trains per week between MetroPort Auckland and Tauranga, hauling up to 9000 twenty-foot equivalent units and the route has unused capacity.

KiwiRail CEO Greg Miller says the upper North Island is a key growth region for KiwiRail and the country.

“This is another example of the supply chain collaborating with KiwiRail to design and deliver rail infrastructure to better connect New Zealand,” Miller said.

Development of the Ruakura Inland Port is scheduled after the completion of the Hamilton section of the Waikato Expressway in 2021.


Pacifica Shipping to upgrade with larger vessel

Wednesday, 7 August 2019, 8:29 pm
Press Release: Swire Shipping

Increased tonnage to meet rising coastal and international transhipment demand

New Zealand – Pacifica Shipping today confirmed that it has acquired a larger 1700 teu vessel for deployment on its premium coastal shipping service in New Zealand. The MV Moana Chief – which is expected to commence operations formally in September 2019 – will meet growing domestic and international transhipping cargo demand. Pacifica was acquired by The China Navigation Company (CNCo) – parent of Swire Shipping – in 2014.

Swire has been a long-term and active participant in New Zealand’s maritime and transport industry. The first Swire vessel called to New Zealand some 130 years ago. Today, Swire Shipping and Swire Bulk currently operate multiple liner and bulk vessels per month, connecting New Zealand to Australia, Asia, North America, Papua New Guinea, Pacific Islands and the rest of the world. For more information, please visit

Brodie Stevens, Country Manager, Swire New Zealand, said: “With the acquisition and an increase in tonnage from 1,100 to 1,700 teu, we strongly believe Pacifica will be in a good position to meet rising domestic cargo and transhipment demand. We want to expand the range of valuable domestic transport solutions currently already provided by Pacifica, and this will enable us to do so. Coastal shipping in New Zealand continues to play an important part in the country’s domestic economy. It is also highly complementary with road and rail networks.”

According to a report by Deloitte in 2016, 236 million tonnes of freight are moved within New Zealand annually. The size of container ships has been increasing. Coastal shipping will continue to play a role in reducing greenhouse gas emissions per container, and will also be a factor in New Zealand manufacturers’ decarbonisation of their supply chains.

Additionally, New Zealand’s domestic freight volumes are forecast to more than double by 2040, as stated in The National Freight Demand Study 2008, and confirmed again in the NFDS update, completed in 2014 – “Even with massive investment in land transport this increase could not be accommodated by road and rail alone. By growing coastal shipping, New Zealand can take a load off the other transport modes and contribute to a more efficient land transport network. By comparison, in Japan, a country with a similar geography, more than 30% of freight is carried by sea.”

Details of the acquisition are confidential.

Vehicle import rules getting even tougher ahead of stink bug season

Biosecurity rules are being tightened to prevent the arrival of a pest which could devastate New Zealand’s horticultural industry.

The brown marmorated stink bug feeds on more than 300 plants and has already cut a swathe through Europe and the United States.

If it gained a foothold in New Zealand, it could cost the horticulture and arable industries an estimated $4 billion.

In an effort to keep the bug at bay, Biosecurity New Zealand is tightening the rules for imports during this year’s stink bug season, which runs from September to April.

Under the new rules, the list of countries required to fumigate imported vehicles, machinery, and parts before their arrival in New Zealand would rise from 17 to 33.

These countries have all been identified as having stink bug populations.

In another change, imported vehicle cargo would need to be treated offshore, including cargo in shipping containers.

In the past only non-containerised vehicle cargo has required offshore treatment, Biosecurity New Zealand spokesman Paul Hallett said.

Offshore treatment requirements would also apply to all containers from Italy.

The brown marmorated stink bug feeds on more than 300 plants could cost the horticulture and arable industries an estimated $4 billion if it became established in New Zealand.
SUPPLIEDThe brown marmorated stink bug feeds on more than 300 plants could cost the horticulture and arable industries an estimated $4 billion if it became established in New Zealand.

“The new rules are intended to reduce the biosecurity risk to New Zealand, by ensuring potentially contaminated cargo arrives as clean as possible,” Hallett said.

Biosecurity NZ planned to have officers based in Europe this season to educate manufacturers, treatment providers and exporters about the new requirements and to audit facilities.

“If our checks find any issues, New Zealand will not accept any cargo from that facility until the problem has been fixed.”

Hallett said New Zealand’s treatment requirements were now closer to Australia’s, which would make compliance easier for importers bringing cargo to both countries.

“A key difference is that the Australian Department of Agriculture and Water Resources will continue to allow treatment on-arrival for containerised goods,” he said.

The new rules would be provisional until July 15 and could be contested during that time.

The changes come after a spate of stink bug discoveries last year.

In November, Biosecurity NZ ordered a vehicle carrier to leave New Zealand waters after the discovery of stink bugs.

Three live and 39 dead brown marmorated stink bugs were found aboard the Carmen when it arrived in Auckland from Europe. Another 69 regulated stink bugs were also found.

A week later, more than two dozen live stink bugs were found in a box of shoes imported into New Zealand from EBay.


Risk Aversion Grips the Shipping Industry

Ship owners around the world have adopted a risk-aversion policy, which translates to refraining from adding more newbuildings on the global orderbook. In its latest weekly report, shipbroker Banchero Costa said that “there was not much fresh business to report this week for conventional type of ships. In the Japanese dry bulk market Tsuneishi shipyard ordered for their own account a relevant number of ships being Kamsarmax, Ultramax and Handysize. The only foreign order we recorded is for a Kamsarmax for UK based Helikon Shipping (no price nor delivery dates available). Also the tanker sector showed poor levels of activity, the only business done refers to few options declared by Oman Shipping at Daewoo for four VLCC dely from June 2021. In the smaller segment, Japanese owners Nissen Kaiun extended their commitment with Chinese shipbuilders by booking 3 x 19,900 dwt product tankers at Nantong Xiangyu for delivery in 2022, no price available. Niche segment of PCTC saw an order from Japanese Kawasaki Kises and NYK for dual fuel 7,000 ceu PCTC at Imabari and Shin Kurushima respectively (specialist builders in this sector). Estimated cost per ship is around $95 mln; both are fixed on long terms to local Japanese major charterers Toyota”, said the shipbroker.

Similarly, Allied Shipbroking reported that “the lack of activity for dry bulk vessels continued for yet another week, with no new deals coming to light, while appetite amongst buyers seems to have eased back significantly lately. This comes despite the positive momentum that is currently noted in the dry bulk freight market. It is likely that owners have shifted their focus over to the secondhand market for the time being, as they are keener on bargain investments that can take imminently take advantage of the current improved market, rather than being exposed to the higher and longer term risk typically associated with newbuilding projects. It is not expected that we will see any significant changes in the current trend soon, with any possible upturn in interest being postponed till after the summer period. At the same time, newbuilding activity in the tanker market showed some signs of revival, as last week 4 new orders were reported. The majority of them included product/chemical tankers, with this segment having shown the most promise of late amongst most interested buyers right now. Investors in tanker market continue to show a more bullish face and thus we may well continue see this sort of new ordering volume tricle through over the coming months”.

Meanwhile, in the S&P market, Allied said this week that “on the dry bulk side, the current positive momentum in the freight market increased interest for second-hand units, with activity remaining at healthy levels for yet another week. Interestingly, last week we saw deals include vessels from larger size segments of the dry bulk fleet, such as Capes and Panamax, with the focus extending to more vintage units as well. This pattern is expected to continue to be seen over the coming weeks, as optimism has returned to buyers following the recent recovery in freight rates. On the tanker side, we might not have seen the impressive levels that were being noted some weeks back, but a fair amount of deals did come to light. Focus was spread across the whole spectrum of the tanker sector, reflecting the positive market outlook being held now. It is anticipated that we will see further activity take place in the following weeks, as optimism for improved earnings to be seen in the final quarter of the year are now mounting”, the shipbroker said.

In a separate note, Banchero Costa added that “in the dry market, it was reported Japanese controlled Capesize “Euro Fortune” around 177k dwt 2005 built Mitsui was done at $14.7 mln. Furthermore always in the same segment “Mineral Noble“ around 170k dwt 2004 built Hyundai was sold at $13.5 mln with 3 years t/c back to present owners. Concerning Panamax, “Crystal Windabt” around 76k dwt 2009 built Shin Kasado was done at $13.3 mln, a month ago “Nord Galaxy” around 77k dwt 2006 built Imabari (BWTS fitted) was fixed at $10.6 mln. A tier II Supramax “Tomini Victory” around 57k dwt 2012 built Yangzhou was sold at $ 10.8 mln. At an auction in UK a modern Handysize “Alkyon” around 36k dwt 2015 built Jingling was sold at $12.5 mln (vessel has SS/DD due and no BWTS). Always in the Handy segment, “Daiwan Braveabt” around 34k dwt 2014 built Namura was sold at $15.5 mln to Greek buyers. In the tanker market, after inspection was invited during June, it seems that the “Phoenix Vanguard” around 306k dwt 2007 built DSME was sold at $38.5 mln”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

Shipping’s Route To A More Sustainable Future

Today, 90 percent of all goods are transported via cargo ships, making them the top carrier of worldwide trade. In fact, the screen you’re reading this on at this very moment most likely made its way to you by sea.

Despite such ubiquity, the shipping industry produces less than 3 percent of all carbon dioxide (CO2) emissions. But with the global economy estimated to grow by 130 percent between now and 2050, shipping emissions are projected to soar as global trade increases. According to the International Maritime Organization (IMO), CO2 emissions could increase anywhere between 50 percent and 250 percent during that time.

CO2 is not the only environmental challenge the industry faces. Shipping also needs to control the amounts of other harmful substances its freight carriers release into the atmosphere, in particular nitrogen oxides and sulfur oxides.

To counteract this, shipping companies are seeking alternatives to the heavy fuel oils used by most carriers as well as ways to strip noxious particles from vessels’ exhaust gases.

New approaches with liquified natural gas

One of the most obvious alternatives to heavy fuel oils is liquefied natural gas (LNG). It’s already used as fuel by some 150 ships around the globe, and the numbers are growing, largely due to the near-zero levels of sulfur oxides (SOx) emitted by LNG vessels compared with diesel-powered ships. Sulfur oxides have been linked to both health problems (respiratory disease) and environmental phenomena (acid rain).

To cut its SOx emissions, the shipping industry has introduced restrictions in key shipping routes across the world. So far, the IMO has created four Emission Control Areas, ranging from the Baltic Sea to the coasts of North America, with a sulfur cap of 0.1 percent. The cap also applies throughout the European Union. In 2020 new IMO regulations will come into force mandating the sulfur content of marine fuels in all waters of the world to be less than 0.5 percent.

Ships have two options to reduce sulfur emissions within these limits. First, they can install desulfurization equipment, such as the Large-scale Rectangular Marine Scrubber developed by Mitsubishi Heavy Industries Group. It removes SOx from the exhaust gases emitted by marine diesel engines, purifying emissions from inexpensive heavy fuel oil to a level equivalent to more expensive low-sulfur fuels.

The second option is to use fuels with a lower sulfur content, such as LNG. As well as cutting a ship’s SOx emissions, LNG also has lower nitrogen oxide and CO2 emissions, making it a popular choice for shipping companies seeking to reduce their environmental impact.

MHI Group’s Large-scale Rectangular Marine Scrubber. Image: MHI GROUP

However, the growth of LNG as a shipping fuel is limited by a lack of infrastructure for fueling — or “bunkering,” as the LNG fueling process is known. Currently, only a dozen ports around the world offer bunkering, the majority based in Europe.

While more bunkering stations are planned, a major breakthrough occurred in 2017 when the world’s first purpose-built LNG bunkering vessel began operating from the Belgian port of Zeebrugge. The ENGIE Zeebrugge carries out ship-to-ship bunkering. Traditionally, LNG-fueled ships have largely depended on fixed bunker locations or the limited bunkering capacity of LNG trailers, but the ENGIE Zeebrugge can service a variety of these ships. This unique vessel is the start of what its operator, Gas4Sea, plans to be an LNG-bunkering fleet.

A return to electricity

Although LNG has advantages over diesel, there are also drawbacks. Not only is LNG dependent on widespread bunkering infrastructure, but it also pollutes more than diesel when it comes to one particular greenhouse gas: methane.

To avoid increasing methane emissions — which are 30 times more potent than CO2 in trapping heat in the atmosphere — some shipping operators are looking to emulate the auto industry’s shift to electric vehicles. Boats, in fact, used electricity before diesel; the Bergen Electric Ferry Company in Norway began operating in 1894. Its last boat with electric propulsion was converted to gasoline in 1926, and later to diesel. In 2015, the company returned to its roots, once again operating an electric ferry, powered by 12 5kWh lithium-ion batteries. The ferry runs all day and charges its batteries at night.

The rapid advances in lithium-ion battery technology, pioneered by the auto industry, have put the spotlight on electricity as a potential fuel source for shipping. However, regular nighttime charging is not an option for shipping liners traveling great distances, and the battery technology does not yet exist that could power these vessels.

One solution, again with a nod to the auto industry, may be hybrid electric vessels. Norwegian shipping company Eidesvik Offshore, which already runs its ships with LNG, successfully retrofitted a battery system in 2017 to its vessel Viking Princess. The ship now runs on a combination of a battery pack for energy storage and three LNG-fueled engines. The batteries are estimated to have cut Viking Princess’ fuel use by nearly a third and its emissions by 18 percent.

Shipping, which early on was powered by the wind and nothing more, has yet to return to its roots as renewably fueled transportation. But buoyed by ingenuity, it’s clearly sailing in the right direction.

Shipping Blockchain Initiative Gathers Steam

A blockchain initiative for seaborne cargo aimed at cutting costs and improving tracking of shipments is getting a boost with the addition of two big container shipping operations.

Germany’s Hapag-Lloyd AG and Japan’s Ocean Network Express said Tuesday they will join the TradeLens platform launched by A.P. Moller-Maersk A/S and International Business Machines Corp. , giving the program five of the world’s six largest carriers controlling about 60% of the oceangoing container cargo capacity.

Switzerland-based Mediterranean Shipping Co. and France’s CMA CGM SA, the world’s second and third biggest box-ship operators behind Maersk, joined the effort in May.

“Now, with five of the world’s six largest carriers committed to the platform, we can accelerate that transformation to provide greater trust, transparency and collaboration across supply chains and help promote global trade,” said Martin Gnass, managing director of information technology at Hapag-Lloyd.

For ocean carriers, blockchain technology allows participants to share information as goods move through maritime-focused supply chains.

The system also promises to reduce the cost of paperwork. Maersk said the maximum cost of the required documentation to process and administer many of the goods shipped each year makes up roughly one-fifth of the physical transportation costs.

Widespread participation across the supply chain is key to making TradeLens work.

Many companies, including transportation operators and freight forwarders that manage the flow of goods, have been reluctant to share detailed information about shipments, which often are handled by multiple cargo companies, for fear that competitors will use the data to lure away customers. The blockchain platform seeks to overcome that concern by allowing only trusted participants who contribute information to a common electronic ledger.

CMA CGM, the world’s fourth-largest container operator after Maersk, MSC and No. 3 Cosco Shipping Holdings Ltd. of China, late last year joined the Global Business Network, a similar blockchain initiative anchored by Cosco and other Asian carriers.
Source: Wall Street Journal

The Government plans to pump money into developing coastal shipping facilities

The Government has signalled it intends to pump more money into developing New Zealand’s “blue highway” by bolstering the country’s coastal shipping facilities.

Although details are still sparse at this stage, Transport Minister Phil Twyford said this morning a funding announcement would be made before next year’s election.

Speaking alongside a number of other senior Ministers this morning, Twyford signalled the Government’s intentions to develop coastal shipping alongside rail.

“There is a lot of freight that can actually be shifted on the blue highway and so we want to get roads, rail and coastal shipping working together in an integrated way.”

This comes after the Government announced it would spend $1 billion on New Zealand’s rail network.

Although none of the $1b announced in the Budget was going into coastal shipping, the Government has an announcement planned in this area.

“We’re working on it, and we’ll get back to you on that,” Twyford said.

Deputy Prime Minister Winston Peters also signalled the Government’s plans for spending more money on the new maritime and roading initiatives.

He said the money spent on KiwiRail was to help get “these leviathans” – an apparent reference to trucks – off the road and give ratepayers and taxpayers a chance to build and maintain roads at an affordable level.

He said every other country in the world apart from New Zealand was doing this.

Asked if that meant the Government would be investing further into roads, Peters said: “You’re going to see balanced investment; in maritime, on rail and on roads.”

“All three modes of transport – they have always had a place in New Zealand, and they’ve got a place in our future.”

Peters and Twyford, along with Finance Minister Grant Robertson and Regional Economic Development Minister Shane Jones, this morning announced a few further details of the $1b KiwiRail spend.

By 2023, there would be 100 new locomotives and 900 new container wagons in operation.

The new funding would be used to replace some of the older trains, which, according to Peters, were “tired and worn-out”.

More details of the Government’s rail plans will be announced in the coming months, Twyford said.

Robertson added that the $1b spend was only the beginning of how New Zealand’s rail system is funded.

“I don’t believe there is anything within our budget on the economic side that emphasises wellbeing more than rail.”