1 00:00:00,160 --> 00:00:03,120 Speaker 1: So the cook straight ferry d Day has finally arrived. 2 00:00:03,160 --> 00:00:05,280 Speaker 1: We should find out this afternoon what fairies the government 3 00:00:05,360 --> 00:00:07,520 Speaker 1: plans to buy in order to replace the labor ordered 4 00:00:07,560 --> 00:00:09,920 Speaker 1: Korean fairies that they've canceled, you know the ones I'm 5 00:00:09,920 --> 00:00:12,240 Speaker 1: talking about this at three billion dollar deal. Joining me 6 00:00:12,280 --> 00:00:15,480 Speaker 1: now is Transporting New Zealand's policy and advocacy lead Billy Clemens, 7 00:00:15,480 --> 00:00:18,440 Speaker 1: he Billy Ohm or Leada what are you hearing? Are 8 00:00:18,480 --> 00:00:20,480 Speaker 1: you hearing two smaller ships at a cost of nine 9 00:00:20,560 --> 00:00:22,600 Speaker 1: hundred million bucks with a break fee of about three 10 00:00:22,680 --> 00:00:24,240 Speaker 1: hundred million for the existing contract. 11 00:00:25,120 --> 00:00:29,600 Speaker 2: Oh, look, we are reserving judgment on the outcome until 12 00:00:29,600 --> 00:00:31,680 Speaker 2: we hear that this afternoon. But look, I think that 13 00:00:32,120 --> 00:00:34,800 Speaker 2: what we have been hearing from the government is fairly promising. 14 00:00:35,000 --> 00:00:38,720 Speaker 2: Is that the overall costs will be lower than that 15 00:00:38,880 --> 00:00:42,640 Speaker 2: of the IRAS projects that hopefully will continue to see 16 00:00:42,640 --> 00:00:46,680 Speaker 2: a competitive market across the Strait, and we will also 17 00:00:46,720 --> 00:00:50,080 Speaker 2: continue to see rail compatibility across the Strait, even if 18 00:00:50,080 --> 00:00:51,239 Speaker 2: that's not rail enablement. 19 00:00:51,360 --> 00:00:53,680 Speaker 1: What does rail compatibility mean? Isn't that what we've already 20 00:00:53,680 --> 00:00:55,520 Speaker 1: got where you basically just take the stuff off the 21 00:00:55,600 --> 00:00:57,240 Speaker 1: rail cards and put it on the fairies and then 22 00:00:57,240 --> 00:00:59,680 Speaker 1: load it back on the other side. 23 00:01:00,120 --> 00:01:03,120 Speaker 2: That's right essentially, So whereas rail enablement will have those 24 00:01:03,160 --> 00:01:06,520 Speaker 2: built and rail tracks on the vessels. Yeah, rail capability 25 00:01:06,880 --> 00:01:10,760 Speaker 2: and still ensures some degree of fixibility, but it doesn't 26 00:01:10,800 --> 00:01:15,440 Speaker 2: have some of those higher higher costs that railed enablement means, 27 00:01:15,520 --> 00:01:19,080 Speaker 2: which ultimately result in the i REX project costs, you know, 28 00:01:19,800 --> 00:01:21,920 Speaker 2: one of the factors that led to those costs continually 29 00:01:22,080 --> 00:01:22,640 Speaker 2: glowing up. 30 00:01:22,880 --> 00:01:25,480 Speaker 1: Believe, if the reports are accurate, nine hundred million for 31 00:01:25,520 --> 00:01:27,600 Speaker 1: the new fairies, three hundred for the break fee, then 32 00:01:27,600 --> 00:01:30,120 Speaker 1: we're at a cost of one point two billion dollars already, right, 33 00:01:30,160 --> 00:01:32,480 Speaker 1: so we're still shy of the three billion, but we 34 00:01:32,640 --> 00:01:35,080 Speaker 1: have to still upgrade the port infrastructure, don't we. 35 00:01:36,280 --> 00:01:39,720 Speaker 2: Yeah, look absolutely. I think that the over all i 36 00:01:39,880 --> 00:01:42,520 Speaker 2: REX cost was about twenty percent was the firies and 37 00:01:42,600 --> 00:01:45,800 Speaker 2: eighty percent was port side costs. So he had Treasury 38 00:01:45,840 --> 00:01:48,240 Speaker 2: pointing out that year this is essentially a port side 39 00:01:48,840 --> 00:01:51,880 Speaker 2: instructure project with some with some furies tacked on. 40 00:01:52,120 --> 00:01:54,840 Speaker 1: And so if we do the port side to just 41 00:01:55,080 --> 00:01:57,320 Speaker 1: you know handle medium sized firies and just you know 42 00:01:57,360 --> 00:01:59,120 Speaker 1: not fall into the sea, how much is that going 43 00:01:59,160 --> 00:01:59,520 Speaker 1: to cost? 44 00:02:01,240 --> 00:02:03,960 Speaker 2: Well, it'll be the cities that we've had from the government, 45 00:02:03,960 --> 00:02:06,720 Speaker 2: as it will be significantly less than that three billion 46 00:02:06,840 --> 00:02:10,240 Speaker 2: dollar figure. I think that ultimately what was really expanding 47 00:02:10,960 --> 00:02:13,160 Speaker 2: the cost of those facilities was first of all that 48 00:02:13,240 --> 00:02:15,520 Speaker 2: rail enablement and the fact there were very very large 49 00:02:15,560 --> 00:02:17,880 Speaker 2: vessels that were coming in, but also the fact that 50 00:02:17,880 --> 00:02:21,480 Speaker 2: you had one hundred year design life of those facilities, 51 00:02:21,520 --> 00:02:24,360 Speaker 2: and so we might expect that to come down somewhat, 52 00:02:25,000 --> 00:02:28,359 Speaker 2: but ultimately we hope that we still see a reasonably 53 00:02:28,400 --> 00:02:31,960 Speaker 2: well future proof facility because that's that's important for not 54 00:02:32,040 --> 00:02:35,359 Speaker 2: just for Intrialander, but for any other competitor operating on 55 00:02:35,520 --> 00:02:37,560 Speaker 2: that route. You've got straight en zed at the moment, 56 00:02:37,600 --> 00:02:39,920 Speaker 2: which actually got a slightly greaterst year of the overall 57 00:02:39,919 --> 00:02:40,960 Speaker 2: commercial vehicle market. 58 00:02:41,560 --> 00:02:44,079 Speaker 1: So Billy really appreciate talking to you. Thank you, Billy Clemens, 59 00:02:44,360 --> 00:02:47,400 Speaker 1: Transporting New Zealand policy and advocacy, leading for more from 60 00:02:47,400 --> 00:02:48,680 Speaker 1: the mic Asking Breakfast. 61 00:02:48,840 --> 00:02:52,160 Speaker 2: Listen live to news talks that'd be from six am weekdays, 62 00:02:52,400 --> 00:02:54,440 Speaker 2: or follow the podcast on iHeartRadio.