Right of reply to media release by Port of Marlborough

We congratulate Port of Marlborough on the demolition of the obsolete, seismic risk, concrete structure that supported the rail enabled that was retired in August last year. That is work that has to be done regardless of which site manages the Southern Ferry Terminal.

This is not the start of new development; it is doing the required demolition.

“There is no evidence that Port of Marlborough has a new design, a construction timetable or contracts in the place. So, there is ambiguity about the future of inter-island connection.

Now is the time to consider the best option with open minds and a comparative analysis.

Port Marlborough dismisses the Clifford Bay proposal as "chasing unproven ideas." There is nothing "unproven" about the numbers.

Let’s start with some facts.

It is a geographical fact that a terminal at Clifford Bay would save 150 minutes off every single ferry crossing. It is a fact that this reduction saves millions in fuel, significantly reduces carbon emissions, and allows vessels to complete more return trips per day. It is just a better outcome for passengers and freight.

Mr Welbourn is the CEO of a company that has in its 2025 Annual Report states that it has Total Equity deployed of $188M that made a $4M profit. That is a 2% return for his shareholders, the people of Marlborough.

Now he is now proposing to spend nearly $1 billion dollars rebuilding a ferry terminal in Picton to get what the government is calling a “minimum viable product!”. If they go ahead, the company which is struggling will be making massive losses.

At the present time it is uncertain who his customers will be. The government has yet to decide who will operate the new vessels it is purchasing, and Morgan Stanley is reported to be selling StraitNZ.

Yet, Mr Welbourn wants the rate payers of Marlborough to back a $110M loan into this business. That is nearly $4000 per rateable property from the people of Marlborough. He would be better off putting the money into term deposit, or better still giving the ratepayers their own money back.

It is a fact that is a bad deal.

We agree that Picton has served New Zealand well for generations. But we must design our infrastructure for 2060, not 1960. New Zealand is desperate for productivity gains, opting for the longer, slower route purely for the sake of "history" is a luxury we cannot afford.

Mr. Welbourn argues that the Picton redevelopment delivers "public value" because it keeps money circulating in Marlborough and returns dividends to ratepayers. This is a very narrow definition of value. True public value is not taxing New Zealanders and ratepayers to build infrastructure that the private sector is willing to fund. 

Construction of Clifford Bay would create a modern logistic hub for the North and South Islands, which cannot be replicated at Picton. The economic and productivity gains would accrue to the entire country are substantial, helping grow our economy. 

NSX has made a clear offer: we can build a modern, multi-use ferry terminal at Clifford Bay using private capital. This moves the financial risk away from the taxpayer and onto private investors. It frees up government infrastructure funding for hospitals, schools, and roads, rather than sinking it into a port rebuild in a bay that is already at capacity.

Demolishing an old bridge does not prove that Picton is the best solution; it only proves that Port Marlborough is rushing to create facts on the ground to prevent a better option from being considered.

Now is to consider the options not shut them out. We believe New Zealand deserves a transport network defined by efficiency, speed, and fiscal responsibility—not one defined by the sentiment that "we’ve always done it this way."

We would welcome a discussion with Mr Welbourn on how we can work together. How we can get better business outcomes for the Port of Marlborough, better services for his customers and to create some prosperity for people of Marlborough. We have asked to meet him and his team on a number of occasions without a positive response. 

Our door is always open.