The Interislander Arahura ferry's replacement will go into service this spring, bearing the new name of Kaiarahi.
Kaiarahi, known as the Stena Alegra when she last visited New Zealand, is in Singapore undergoing an extensive refit to meet Interislander requirements, KiwiRail said.
Kaiarahi, means 'leadership' or 'to lead' and its metaphorical meaning is 'guardian' or 'to guide.'
"Kaiarahi not only supports KiwiRail and the Interislanders business vision of leading the way to provide superior logistics and tourism services but it is also a name that reflects our service promise to our customers," KiwiRail chief executive Peter Reidy said.
The new name was selected after KiwRail staff entered a competition and the top suggestions were put forward for consideration by local iwi and KiwiRail's Maori staff network Te Kupenga Mahi.