What has the Government agreed to in this contract?
The Government has signed a funding agreement with 44 South Shipping Limited Partnership to build a new vessel in China which, once operational, will deliver shipping services to the Chatham Islands for at least the next 20 years.
When will the ship be built and the new service start?
The ship build is scheduled to be completed in August 2027, and the new service should be ready to operate in late 2027/early 2028. This is before the expected retirement of the Southern Tiare in March 2028.
Who will deliver the new shipping service?
The service will be delivered by 44 South Shipping Limited Partnership, a joint venture between:
- McCallum Bros Ltd, and
- Nova Marine Carriers
44 South Shipping has committed to procuring and constructing a brand‑new vessel to operate the new service.
How long is the new service contract?
The contract secures a reliable shipping service for the next 20 years, providing long‑term certainty for the Chatham Islands’ economy and community. 44 South has the option of a five-year extension to this agreement if the service is performing well.
What will it be able to carry?
The vessel is being designed specifically for the unique needs of the Chatham Islands and will transport livestock, fuel, general freight, bulk cargo, and vehicles. Importantly, the new vessel will be designed to carry up to 4,500 sheep or 1,000 cattle (or a mix). In comparison, the Southern Tiare has capacity to carry 1,750 sheep or 420 cattle.
How many sailings will there be a year?
There will be a minimum of 14 return sailings per year for a period of 20 years. As long as there is sufficient demand, the minimum number of services will increase to 17 return sailings per year at the start of the fourth full calendar year following the commencement of services; this would be roughly one sailing every three weeks.
The funding agreement requires a minimum frequency of one sailing per month to ensure delivery of essential supplies (such as fuel, food, and other essential supplies) along with a minimum of four sailings to Pitt Island each year.
This schedule will result in a net increase in overall capacity for supplying the Chatham Islands when compared with what the Southern Tiare has achieved in recent years and will provide more certainty and confidence to the Chatham Islands’ community in relation to the improved reliability of services.
Why is this new supply ship needed?
Services to the Chatham Islands are currently operated by Chatham Islands Shipping Limited (CISL) using the 40-year-old vessel Southern Tiare. The vessel is at the end of its service life and will not be able to continue operating after 1 March 2028.
The vessel’s recent unreliability, due to its age, has directly affected community wellbeing and local businesses.
How will this benefit the Chatham Islands economy?
The larger, more reliable vessel will:
- Strengthen key sectors such as fishing, farming and tourism
- Reduce the risk of essential supply shortages
- Support businesses with reliable freight services, and
- Provide long‑term certainty for planning and investment in these sectors.
How much will the ship cost?
The total cost is commercially sensitive. The Crown is funding NZ$24.3 million towards the cost of the vessel. 44 South Shipping is funding the remainder of the cost of the vessel.
Why did you choose this provider?
We chose 44 South because its proposal gave us the greatest confidence that a new service can be in place before the Southern Tiare retires. It’s a practical, future-focused solution that meets the needs of the community now and ensures a reliable service that can be scaled up over time to support higher demand in the future.
What was the process behind this decision?
In March 2025, the Ministry released a Request for Proposal (RfP) to procure a replacement shipping service for the Chatham Islands. After a thorough review of applications, and consultation with the Chatham Islands community, the Ministry recommended a joint venture between McCallum Bros Ltd (MBL) and Nova Marine Carriers (NMC) as the preferred supplier. This was announced by Minister James Meager in September 2025.
The Ministry of Transport has negotiated a funding agreement with the joint venture, now incorporated as “44 South Shipping Limited Partnership,” which was approved by Joint Ministers (Associate Transport, Transport, and Finance) and signed by the Acting Secretary for Transport on 20 February 2026.
Why is it being built in China?
China builds over 60% of the world’s ships. 44 South Shipping considered Chinese shipyards, alongside those in other countries, to ensure it was getting the best value for money.
What total funding has the Crown allocated (including the 2022 funding), how much has been spent to date, and how has that funding been used?
The Crown allocated a total of $35.1 million to date to fund a new vessel. Of this, approximately $10.8 million has been spent on maintaining and repairing the Southern Tiare so it could continue operating until a new service was secured. These costs included essential maintenance, several unexpected repairs, and additional cost pressures from rising prices and global inflation. The remaining $24.3 million is being used to fund the new vessel.