It is not clear whether two new electric ferries for Auckland will mean cheaper trips for passengers.
The government has announced $27 million of funding - about 75 percent of the cost - for two electric ferries that will be owned by Auckland Transport.
They will be New Zealand made and on the water some time in 2024.
But the new vessels are no guarantee of competition on the water.
"Auckland Transport is going to own them and part of the project will be working through the operations model. And obviously Fullers are part of the picture in there," Energy Minister Megan Woods told Checkpoint.
Ferry operator Fullers runs most harbour services in Auckland. Recently Transport Minister Michael Wood said he was "hacked off" at the company for moving slowly to provide discounted fares in line with the government's half-price public transport scheme.
"Obviously Fullers has expertise in ferry operation. But like any of these things, we need to make sure that we're getting a good model being set up, because a big part of this project is also the research element. Not only how to build the boats and how they operate in New Zealand, but how to make them work from a business perspective as well," Megan Woods said.
"As to how and who will operate it hasn't been decided," she said.
"I'm not saying I want Fullers to run it. What I'm saying is I want us to, as part of what we're doing here, work through what is the best model for passengers. What is going to get more people out of their cars, onto public transport and using efficient public transport."
Woods could not guarantee fares would be cheaper on the new ferries.
"That's part of what the research will be, about how to make things work from a business perspective.
"You'd have to say that, yes, having a vessel that doesn't run on fossil fuels - that are only going to get more and more expensive - is going to be better for passengers over the long run.
"But working out those business models is a big part of what this project is about as well."
Woods said she would not expect fares would be more than on the existing diesel ferries.
"Diesel is an incredibly expensive fuel… compare that to electricity, a much cheaper way of operating. But as I said, a big part of what we're doing here is working through what the business model for the operation of the ferries looks like as well.
"Our aim is to not make more expensive public transport. So my assumption would be that they will be cheaper because we want more people to be using public transport and we know reliability and cost are important parts of getting people onto public transport."
The electric ferries have a range of 40km, so they will be able to travel the approximately 30km distance to Waiheke. Woods did not have a figure on how long it would take to recharge the vessel, but said the charging infrastructure is being worked through with Vector.
"In terms of the infrastructure… it will need to be in a way that can turn around the ferry quickly."
Woods said the two-year boat-building process is bringing together a lot of expertise from different local companies.
"This isn't simply going offshore and buying a ferry that's made elsewhere. This is using New Zealand maritime expertise to make boats that are ripe for our conditions."
