Two new Cook Strait ferries will cost the taxpayer 551 million dollars

KiwiRail has signed up with Korean shipyard Hyundai Mipo, to deliver the vessels in 2025 and 2026.

Passenger and car capacity will nearly double, rail freight will triple and emissions should be 40 percent lower.

KiwiRail Chief Executive Greg Miller says they had to work hard for the funding.

He says the businesses cases had to stack up as well as design, emission aspects and safety protocols.