Islanders furious as New Zealand government’s ‘dilly-dallying’ gets it into $800 million (£600 million) cancellation debt without even a contract signed for new ferries to replace the unsafe ones still being used

Professor John Robertson OBA

From NBR in March 2025, the above.

What happened?

From the New Zealand Herald:

Within months of unceremoniously scrapping the previous Government’s iRex project, Finance Minister Nicola Willis was advised by the crack team, set up by herself, to go back to try to salvage something with the scorned shipbuilder.

This new figure of $800 million is a shock after earlier reports:

New documents reveal the coalition has set aside $300 million to cover broken infrastructure contracts and a break-fee with Hyundai, after the government ended a contract with the Korean company to build two new Interislander ferries. The contract, known as iRex, was cancelled with Hyundai shortly after the Coalition came to power [2024], citing a $3 billion cost blowout associated with the ferries and the required port upgrades.

https://www.rnz.co.nz/news/political/543699/government-s-irex-ferry-cancellation-costed-at-300-million-for-now

Just how bad is New Zealand’s ferry fiasco? Have they had later completions? No, none, no completions at all. Did they find a crack in new ship and have to delay service for a whole day? Don’t make them laugh. They’ve had real stuff to deal with there. See this:

From New Zealand Radio 8 August 2024:

Troubled Interislander ferry Aratere was damaged berthing into Wellington Harbour about 3.30pm on Thursday, Wellington’s harbourmaster confirmed to RNZ.

There is a hole in the hull but it is high on the ship, and no injuries are reported.

KiwiRail said in a statement that while docking in strong winds, the ferry made contact with the link span, the dock ramp which allowed vehicles to access the vessel.

Docking in high winds? Check this CalMac show: https://www.youtube.com/watch?v=V1kY_COMeXc

[You’ll need to cut and paste the url. WordPress won’t allow it.]

Only one month ago, the same ferry ran aground:

From 1News 10th July 2024:

Interislander ferry Aratere ran aground after a button was “inadvertently pressed”, sending the vessel off-course, according to an internal safety bulletin obtained by 1News.

According to the bulletin, dated July 5, the bridge crew had switched the Aratere from hand steering to autopilot as it passed Mabel Island when an “execute button was inadvertently pressed” at 9.26pm.

This led the vessel to “commence an alteration of course” by around 1 nautical mile earlier than planned.

The bridge team attempted to switch back to hand steering mode but was unable to override the autopilot in time.

Hewlett denied New Zealand First’s query as to whether the Aratere ran aground after someone onboard the vessel “put the autopilot on, went for a coffee, and then couldn’t turn the autopilot off” when they returned.

“While the cause of the grounding is yet to be formally determined, Maritime NZ’s preliminary enquiries have found that the incident was not due to a crew member leaving the bridge to make a coffee,” she said.

There was only one crew member on the bridge of a large ferry?

Surely the Transport Minister must be door-stepped by media? Not in New Zealand

One week earlier we had this on TuS:

In January 2023:

Stricken Cook Strait ferry the Kaitaki drifted more than a nautical mile towards the rugged Wellington south coast in winds gusting over 100kph, it’s been revealed.

The harbour ships that raced to her aid also likely lacked the grunt to pull her and 800 passengers to safety.

Wellington Harbourmaster Grant Nalder on Sunday praised the professionalism of the crew and captain, who battled challenging conditions to drop two anchors and halt the powerless ship’s drift 0.9 nautical miles from shore and 0.6 nautical miles (1.1km) from hitting the sea floor.

In November that same year:

Interislander expects its Cook Strait ferry Kaiarahi will be out of action for a week after having a large hole ripped in its hull.

The ferry was damaged as it came into the berth in Wellington at 10pm on Sunday.

All sailings of the Kaiarahi for Monday had been cancelled, and that could continue for up to a week.

June 24th 2023:

Cook Strait travel is under pressure, with just one of three Interislander ferries operating following the grounding of the Aratere.

The Aratere will sail again only when Maritime New Zealand gives clearance.

“There will be some disruption for sure,” Interislander Executive General Manager Duncan Roy said.

The Kaiarahi was undergoing maintenance in Picton until July 6, a Kiwirail spokesperson told 1News.

The owners, KiwiRail made a profit of $64.9 million but paid no dividend to shareholders, unlike in earlier years.

Sources:

https://www.1news.co.nz/2024/07/10/aratere-ran-aground-after-a-button-was-inadvertently-pressed/

https://www.msn.com/en-nz/news/national/interislander-ferry-aratere-damaged-berthing-into-wellington-harbour/ar-AA1oqMyY

https://www.stuff.co.nz/travel/travel-troubles/131092724/broken-cook-strait-ferry-drifted-a-nautical-mile-towards-rocks

https://www.rnz.co.nz/news/national/502269/cook-strait-ferry-has-dramatic-hole-in-hull

https://www.rnz.co.nz/news/national/502269/cook-strait-ferry-has-dramatic-hole-in-hull

https://www.1news.co.nz/2024/06/24/dire-strait-aratere-grounding-exposed-our-stretched-ferry-services/

5 thoughts on “Islanders furious as New Zealand government’s ‘dilly-dallying’ gets it into $800 million (£600 million) cancellation debt without even a contract signed for new ferries to replace the unsafe ones still being used

  1. When we visited my brother and his wife in NZ we went to the beautiful Bay of Islands and ferry hopped around. We had no idea there might be problems with the ferries and it was never mentioned by our relatives.

    That can never be said about Scotland though because of the incredible ferry fiasco coverage which I’m sure has even reached NZ so prolific are the profferings.

    Liked by 1 person

  2. The Youtube ‘ferry handbrake turn’ to berth worked fine John, no need to mess about.

    It is indeed fitting comparative to the 6 year long propaganda war conducted via Scotland’s media against SG and Calmac, and the aides-de-camp in the business and political communites ever willing to boost the hyperbole….

    Perhaps the Kiwis prevented these mafia networks rising to such prominence, impartially of course… 😂

    Liked by 1 person

  3. If only they had access to the Herald down there, they would have soon realised that Catamarans are the only solution for their “Lifeline” services.

    Spookily, Maritime Williams has a pal trying to flog some. 🙂

    Like

  4. New Zealand does not have the same land mass or islands that have to be serviced by ferries. Scotland has better services. Innovative ferries that will save on fuel. First class services.

    Like

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