A ferry service for Tauranga has passed another hurdle, with the newly elected council agreeing to help subside the fares.

If it goes ahead, commuters would be able to catch a ferry between Salisbury Wharf in downtown Mount Maunganui and Tauranga city centre.

Auckland water taxi company Hauraki Express is prepared to build two ferries for the service if local councils subsidise the fares.

It would begin as a two-year trial, with the goal of becoming a permanent service that could expand to include new routes in time.

At a meeting on Monday, Tauranga City Council agreed to fund up to $1.4m for the two-year trial provided the Bay of Plenty Regional Council does the same.

It’s the second time Tauranga City Council has made a decision about the ferries. The commission agreed to fund the service back in May.

The regional council deferred its decision earlier this month because it wanted to ensure the service would have support from the elected council.

Amy and Peter Bourke, of Hauraki Express, hope to run a ferry service in Tauranga. Photo: Alisha Evans.

Hauraki Express special projects manager Amy Bourke said their proposal was different to previous studies into ferries in Tauranga.

“It uses a fleet of small fast and nimble ferries that can get into shallow places,” she said in the meeting’s public forum.

It also didn’t require any new onshore infrastructure, Bourke said.

The fully-enclosed ferries would have seating for 30 people and space for 15 bikes. A ferry trip would cost $6 each way and take about 17 minutes.

“Tauranga has many transport challenges brought about by rapid growth, having the largest port and local geography,” Bourke said.

The harbour wasn’t conducive to efficient roading layouts and Tauranga was reliant on roads for private and public transport, she said.

An artist's concept of the interior of the proposed Tauranga ferry. Image: Supplied.

“The harbour should be looked at as an opportunity, not an obstacle,” Bourke said.

“It is very unusual that Tauranga does not use the harbour for transport purposes.

“Tauranga should take advantage of our blue highway.”

Hauraki Express director Peter Bourke said 1.8 per cent of Tauranga commuters used public transport compared to the national average of 4.2 per cent.

More than 90 per cent of trips around Tauranga were done by single-occupant vehicles compared to 67 per cent nationally, he said.

“Tauranga must give travellers a reason to not just jump in the car.”

The ferry service offered a safe and enjoyable connection between the urban centres, Peter Bourke said.

Deputy mayor Jen Scoular says the ferry service is a fantastic new offering. Photo: Alisha Evans.

Deputy mayor Jen Scoular said solutions needed to be found for the congestion people were facing every day.

“We do know we have to change the mode of transport.

“From a public transport perspective, it’s a fantastic new offering.”

Councillor Glen Crowther said he struggled to bet on the service until he could get assurance the council would prioritise core infrastructure for public transport, like a bus interchange in the CBD.

“There’s potentially a great time in the future when this [ferry service] will be invaluable.”

Tauranga mayor Mahé Drysdale said it was worth giving the ferry service a try. Photo: Alisha Evans.

Mayor Mahé Drysdale said the proposal took a lot of the risk and the cost of a ferry trial out of the council’s hands.

“It’s worth giving it a try.”

If the council were to run a ferry trial it would cost a minimum of $4 million, he said.

A November 2023 feasibility report by the regional council said there would be significant cost barriers with ferry operations.

The cost to the regional council if it were to buy and refit three vessels would have been $4.5m, with an annual running cost of $700,000.

The regional council will consider the proposal again in September.

The Bourkes were hoping to have the service running by Easter 2025 but were now looking at October 2025 if both councils agreed to the funding.

LDR is local body journalism co-funded by RNZ and NZ On Air.