The Rail Minister says any supply chain interruptions caused by the Interislander reducing its Cook Strait ferry fleet can be handled.
Aratere will be retired when demolition begins on its decaying Picton dock late this year or early next, to add infrastructure for new ships.
It's KiwiRail's only rail-enabled ferry.
Winston Peters told Ryan Bridge it won't have an impact on the amount of freight KiwiRail is moving.
He says it will be supplemented by added shipping around the coast and a re-formulated programme.
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