Kelsian Group Ltd Secures A$83M NZ Ferry Contract With Belaire Acquisition
Kelsian secures first New Zealand foothold with NZ$101 million ferry contract and Belaire acquisition
Kelsian Group (ASX:KLS) has been awarded the new Western Package Ferry Contracts by Auckland Transport and has entered a binding agreement to acquire Auckland-based operator Belaire Ferries Limited. The contracts are expected to generate approximately NZ$101 million (A$83 million) in revenue over an initial seven-year term, while the acquisition carries a total purchase price of NZ$8.9 million (A$7.3 million).
According to the company, this marks Kelsian’s first contract in New Zealand, establishing a strategic platform to expand its presence in the market.
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Western Package Ferry Contracts awarded by Auckland Transport
The award followed a competitive tender process, with the bid submitted as a joint proposal between Kelsian’s SeaLink Marine and Tourism division and Belaire Ferries Limited. Services are scheduled to commence on 1 July 2027 for an initial term of seven years, plus an additional two-year extension option.
The contracts are expected to generate approximately NZ$101 million (A$83 million) in revenue over the initial 7-year term. Notably, they include revenue indexation mechanisms designed to protect Kelsian from fluctuations in the cost base of key inputs, including diesel fuel.
Revenue indexation protecting against diesel and other key input cost movements is a structural feature Kelsian has secured across its contracted portfolio: the Sydney Region 6 contract extension signed in June 2026 contains the same indexation mechanism, pointing to a consistent approach in how the group negotiates long-term government agreements.
The Western Package Ferry Contracts comprise two agreements between Auckland Transport and Belaire Ferries Limited: the West Harbour Ferry Contract dated 1 July 2026, and the Rakino Contract, which is yet to be signed but for which terms are agreed on substantially the same basis.
Fleet and vessel commitments
The contracts will involve the operation and maintenance of an initial fleet of six vessels, alongside a broader fleet renewal programme:
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Initial fleet of six vessels: four currently owned by Belaire Ferries plus two existing Kelsian vessels relocated from Australia to Auckland ahead of service commencement.
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Kelsian will procure a new passenger ferry for its South-East Queensland marine operations to replace the two vessels transferred to Auckland.
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A commitment to procure five new ferries over the contract term to replace the initial fleet; the first is expected to enter service in mid-2028, with the remainder between 2029 and 2032.
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Total estimated capital cost of the five new vessels: NZ$38 million (A$31 million).
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Kelsian expects the capital cost of the new vessels to be funded by way of a limited recourse ringfenced financing vehicle (‘SPV’).
Belaire Ferries acquisition details
Through its wholly owned subsidiary Kelsian Marine NZ Ltd, Kelsian has entered into a binding agreement to acquire 100% of the shares of Belaire Ferries. The company currently operates the West Harbour and Rakino Island ferry services on Auckland Harbour.
The total purchase price of NZ$8.9 million (A$7.3 million) is structured as upfront cash consideration of NZ$2.8 million (A$2.3 million) and total deferred and contingent consideration estimated at NZ$6.1 million (A$5.0 million), payable during FY2027 to FY2029 if certain milestone conditions are satisfied.
The acquisition will be funded from existing cash reserves and is expected to complete in Q1 FY27, subject to conditions precedent customary for transactions of this nature, including change of control consents. Belaire founder Adam Tallentire will assist Kelsian with integration and the transition to the new contracts.
| Item | Detail | NZ$ | A$ | Timing |
|---|---|---|---|---|
| Contract revenue (initial term) | Western Package Ferry Contracts | ~101m | ~83m | 7 years from 1 Jul 2027 |
| Acquisition price | Belaire Ferries (100%) | 8.9m | 7.3m | Completion Q1 FY27 |
| Upfront cash | Belaire acquisition | 2.8m | 2.3m | On completion |
| Deferred/contingent | Belaire acquisition | 6.1m | 5.0m | FY27–FY29 |
| New vessel capex | Five new ferries | 38m | 31m | 2028–2032 |
Why the New Zealand entry matters for Kelsian investors
The combined contract award and acquisition establishes what Kelsian describes as a strategically important platform to pursue further growth opportunities in the New Zealand market. The transaction leverages the group’s existing global multi-modal transport capability into a new geography, underpinned by a secured, long-term and indexed revenue stream.
The acquisition is funded from existing cash reserves, while the larger vessel capex is expected to be structured through a limited recourse financing vehicle rather than direct balance sheet funding.
Kelsian’s record H1 FY26 results, which showed underlying profit up 32% to $52.5 million alongside upgraded full-year EBITDA guidance, underpin the balance sheet confidence behind funding the Belaire acquisition from existing cash reserves.
CEO Commentary
“We are delighted to have secured our first contract in New Zealand reflecting Kelsian’s capability as a leading global multi-modal transport operator. This new long-term contract package, together with the acquisition of Belaire Ferries establishes a strategically important platform that positions Kelsian to pursue further growth opportunities in the New Zealand market,” said Graeme Legh, Kelsian Group Chief Executive Officer.
Understanding long-term government transport contracts
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What comes next
The near-term roadmap centres on completing the acquisition and mobilising ahead of service commencement:
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Acquisition completion is expected in Q1 FY27, subject to conditions precedent.
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The Rakino Contract is to be formally signed, with terms already agreed.
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Two Kelsian vessels are to be relocated from Australia ahead of 1 July 2027 service commencement.
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The first of five new ferries is expected to enter service in mid-2028, with the remainder entering service between 2029 and 2032.
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Founder-led integration and transition to the new contracts will proceed under Adam Tallentire.
As at 31 December 2025, Kelsian employed over 12,900 people and operated 6,115 buses and 126 vessels that delivered more than 384 million customer journeys over the prior year. The New Zealand entry adds a further long-term operating platform from which the group has indicated it intends to pursue additional growth in the market.
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