A Ministry of Transport report has recommended further investigations into developing a South Island ferry terminal at Clifford Bay.
Transport Minister Steve Joyce has called for a detailed evaluation of the site near Blenheim, along with a full business plan.
However, Mr Joyce has warned that the investigation could potentially undermine the economic and financial case for the terminal.
If it proceeds, the Clifford Bay site will cut 30 minutes off the ferry trip from the current Picton terminal, while shaving 50 minutes off the road trip and 80 minutes off the rail journey between Wellington and Christchurch.
Mr Joyce says the business case must support the Government's goal of economic growth, productivity and value for money before the green light is given to proceed.
