Picton in limbo since Government pulled pin on KiwiRail's interisland ferry project

The town of Picton has been in limbo since the Government pulled the pin on KiwiRail's new interisland ferry project in December.

Ministers are seeking independent advice on what to do next - but the wait is hurting locals.

"Picton needs to know what's going on - it needs to know what is going to happen. It does feel at the moment that the Government is a little bit North Island centric," said Marlborough Chamber of Commerce CEO Pete Coldwell. 

It's left a town full of cones, closed roads and abandoned construction sites, which bakery owner Deane Stirling said is hitting him in the pockets because the main route through town is out of action.

"It's huge. A lot of businesses suffered from it, from high end to low end, and everyone in between. We should never have got to the position we've got now," said Stirling.

"I think it's silly they've wasted so much money on reorganising the roads," said one local resident.

In 2021, KiwiRail signed a contract with Hyundai to provide two new larger, greener, ships which required major upgrades to Picton's terminal and wharves.

The budget ballooned from $775 million to $3 billion. Which is still less than a multi-billion-dollar tunnel under Wellington.

But the Government declined KiwiRail's request for more money. Kaikōura MP Stuart Smith told Newshub the whole process has been a huge waste of money, and a disappointment.

"I hope that the auditor general would look into this because we need to know how these things happened," said Smith.

When asked if there'll be a decision soon on the Interislander's future, he said that depends on the contract that KiwiRail has with Hyundai.

"Well, that's kind of in Hyundai's hands. Hyundai and KiwiRail, and the negotiations," he said.

Smith thinks three smaller ferries would be a better solution.

"That would not require all the shore works these large ships require," he said.

The Interislander has had several infamous breakdowns over the years, which locals are hoping can be avoided.

"This is the state highway, this is people's lives. We need it to be safe and resilient for the future," said Coldwell.

However, the town currently has more questions than answers. 

"What does plan B look like, and will it be factoring in for growth or is it just a replacement of status quo?" said mayor Nadine Taylor.

KiwiRail didn't respond to Newshub's request before deadline, but there's speculation it could cost them more than $100 million to exit the ship building contract.