Core Points - New Zealand government has awarded a contract to China Shipbuilding Group's Guangzhou Shipyard International for the construction of two large ferries, replacing the previously canceled iReX project with South Korea's Hyundai Heavy Industries [1][5] - The new ferries are expected to save taxpayers "billions of New Zealand dollars" and are projected to be delivered by 2029 [1][6] Group 1: Project Background - The iReX project was initiated in 2020 to replace aging inter-island ferries, but was canceled in December 2023 due to a significant cost overrun, with total costs ballooning from an initial budget of NZD 1.45 billion to NZD 4 billion [5][6] - The average age of the current ferry fleet in New Zealand is 28 years, leading to frequent breakdowns and operational disruptions [2][4] Group 2: New Ferry Specifications - The new ferries will each be 200 meters long, accommodating 1,500 passengers and providing 2.4 kilometers of lane space for trucks, cars, and 40 railway carriages [4] - Infrastructure upgrades will accompany the new ferries, including new docks and ferry connection bridges at Picton and Wellington ports [4] Group 3: Financial Implications - The cancellation of the iReX project resulted in a total expenditure of NZD 671 million without any ferries being produced, including NZD 449 million for land-side infrastructure and project management costs [6] - The current government aims to control project costs within the original 2020 budget, emphasizing the potential for significant savings for taxpayers [6][8] Group 4: Industry Context - China is currently the world's largest shipbuilding nation, with a shipbuilding volume exceeding that of all other countries combined [7] - The global shipbuilding industry is experiencing volatility due to U.S. policies, but trade with Chinese shipbuilders remains unaffected [7][8]