Smooth sailing so far for Ferry Holdings, as a preferred supplier of two new Cook Strait vessels is selected. 

Rail Minister Winston Peters has announced a fixed price has been agreed for two 200-metre-long ferries with road and rail decks, and room for 1500 passengers each. 

Ferry Holdings Limited Chair Chris Mackenzie says final negotiations have started - and contracts will be signed by the end of the year. 

He told Mike Hosking a letter of intent was signed with the shipyard and now technical discussions have begun before contracts can be signed. 

The name of the shipyard will be released when the contracts are signed. 

Mackenzie told Hosking 60 shipyards were in the mix to begin with, and it had shipyards in four countries, that's now come down to one. 

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