en.Wedoany.com Reported - Kelsian Group and Belaire Ferries have recently been awarded the Western Package ferry contract by Auckland Transport to provide passenger ferry services in Auckland Harbour, New Zealand.

The two companies expect the initial seven-year contract, commencing on July 1, 2027, to generate approximately NZ$101 million (about US$61.6 million) in revenue.

Alongside securing the contract, Kelsian Group has entered into a binding agreement to acquire 100% of Belaire Ferries' shares for NZ$8.9 million. The transaction will be funded using existing cash reserves and is expected to close within the first quarter of fiscal 2027.

To fulfill the new contract, the operator will initially manage and maintain a fleet of six vessels, including four currently owned by Belaire Ferries and two transferred from Kelsian Group's Australian marine operations. Kelsian Group stated that to replace the transferred assets, it will procure a new passenger ferry for its Southeast Queensland marine operations.

Kelsian Group also plans to purchase five new ferries over the contract period to replace the initial fleet, with estimated capital expenditure of NZ$38 million. The first replacement vessel is expected to enter service in mid-2028, with the remaining four deployed between 2029 and 2032. Funding for these new vessels will be raised through a special purpose vehicle with limited recourse and ring-fenced capital.

Additionally, the acquisition of Belaire Ferries includes an upfront payment of NZ$2.8 million and deferred payments estimated by Kelsian Group at NZ$6.1 million, which will be paid in installments between fiscal 2027 and 2029 based on milestone conditions.