Old Ferries Will Not Be Replaced, Endangering Passengers and Trade
The New Zealand government has refused to fund the replacement of its ageing inter-island ferry fleet, putting passengers and $15 billion worth of freight at risk. The decision has forced KiwiRail to abandon plans to replace its ageing fleet of ferries that carry freight and passengers across Cook Strait due to the government’s refusal to provide funding. The fleet is prone to regular breakdowns, frustrating the transport sector and causing mayhem in logistics. One in every five sailings was cancelled in the 2022 financial year, jeopardizing the transportation of over $15 billion worth of freight on KiwiRail and BlueBridge ferries per year.
The average age of KiwiRail’s three passenger ferries, known as the Interislander, is 26 years old, with one being 28 years old and effectively reaching the end of its useful life. The government’s decision not to fund the replacement of the fleet was triggered by a recent request for an additional $1.47 billion for port works, with the Finance Minister expressing concerns over the open-ended costs.
Power Failure Exposes Ferry Issue
The issue came to public attention in January of this year when a ferry lost power mid-voyage in bad weather, prompting distress among the passengers and crew. As a state-owned company, KiwiRail had ordered two much larger, hybrid diesel-electric ferries in 2021, but the government objected to the increasing costs of the purchase and the associated port-side infrastructure.
KiwiRail has stated that it cannot proceed without further government funding and will now begin to wind down the project and review plans for its ferry services. This decision has raised concerns among industry leaders and citizens, with many pointing out the potential damage to New Zealand’s public image. The National Road Carriers Association suggested that KiwiRail should seek alternative funding to carry out the significant infrastructure investment required for its ferry services.
Nick Leggett, CEO of Infrastructure NZ, emphasized the importance of a strong and reliable ferry service for the country’s supply chain and criticized the lack of clear funding and certainty for infrastructure projects in New Zealand.
