Picton's Interislander ferry terminal will be demolished later this month, after sitting unused for almost a year.
In February, KiwiRail confirmed a new terminal building and wharf would no longer be built in Picton after the Inter-Island Resilient Connection (iReX) project to replace the Interislander ferry fleet was canned in December.
The project was cancelled after it was revealed costs had quadrupled from $775 million in 2018 to about $3 billion in 2023.
Port Marlborough chief executive Rhys Welbourn said the terminal was built in the 1960s to support the passenger and freight service for New Zealand's first rail-enabled ferry, Aramoana.
Millions of travellers between the North and South islands have been through the terminal, but in recent years the building had not been maintained to high standards due to the anticipated demolition.
A new temporary terminal building and passenger walkway, built for the Interislander to handle passenger and luggage services, opened last June.
"Despite changes in the area, inter-island ferries will continue to operate from their usual berths, ensuring minimal disruption to passengers."
Welbourn said the demolition of the old terminal building would clear the site for future port operations, with the works managed carefully to ensure efficiency and safety within the busy port.