Picton ferries sign for 12 more years

The Interisland Line will continue to use the Picton ferry terminal for the next 12 years, with a further 12-year right of renewal under a contract signed this week.

Port Marlborough board chairman David Dew said negotiating a new deal was a matter of finding the right balance between Toll's contribution to Marlborough and the issue of ferry speeds in the Sounds.

Toll is currently in the Environment Court challenging a council rule that new large ships using the Marlborough Sounds must limit speed to 15 knots unless they have resource consent.

Despite the signing of the contract, a degree of uncertainty remains as the agreement is subject to Toll's ability to operate a commercially viable operation across Cook Strait.

The new contract replaces the previous fixed-fee terms with a commercial agreement based on volumes shipped through the port and provides Toll NZ with a sole lease of the terminal facilities.

- NZPA