The New Zealand government has refused to fund the replacement of KiwiRail’s ageing fleet of ferries, which transport freight and passengers across Cook Strait. This decision has raised concerns about the safety and reliability of the fleet, as well as the impact on the country’s transport sector.
The fleet is known for experiencing regular breakdowns, causing disruptions to freight and passenger services. Freightways, a major logistics company, moves over 25 trucks each day on Cook Strait ferries, and cancellations due to breakdowns have been described as playing “absolute havoc” with their operations. The freight industry estimates that over NZ$15 billion worth of freight crosses Cook Strait on KiwiRail and BlueBridge ferries annually, but one in every five sailings was canceled in the 2022 financial year.
The average age of KiwiRail’s three passenger ferries is 26 years, and one of the ferries is 28 years old, making it effectively at the end of its useful life. In January this year, one of the ferries lost power mid-voyage in bad weather, which led to a mayday call and stranded passengers and crew.
KiwiRail had ordered two larger, hybrid diesel-electric ferries in 2021, but the government objected to the increasing costs of both the purchase and the port-side infrastructure needed to handle the new ferries. Despite a request for an additional $1.47 billion for port works, the government ultimately decided not to proceed with the replacement project, citing concerns about agreeing to an “open chequebook” and the overall budget needed for port redevelopment in Wellington and Picton.
As a result of the government’s decision, KiwiRail maintains that it cannot proceed without additional funding, and its board plans to wind down the project and review its ferry services. This development has sparked strong reactions from industry representatives, with Infrastructure NZ CEO Nick Leggett stressing the importance of a reliable ferry service to the country’s supply chain. Additionally, the National Road Carriers Association expressed hope that KiwiRail would seek alternative funding sources to support such a significant infrastructure investment.
The decision to halt the replacement of the ferry fleet has also raised concerns about New Zealand’s public image and its trustworthiness as a business partner for international companies. Ultimately, the government’s refusal to fund the ferry replacements has sparked debate among industry leaders regarding the impact on transportation and logistics, as well as the overall infrastructure investment landscape in New Zealand.