Interislander's only rail enabled ferry the Aratere will be retired this year. Photo: RNZ / Samuel Rillstone
Interislander's only rail enabled ferry, the Aratere, will be retired this year to make way for the construction of new port infrastructure, seeing some jobs cut.
The ship which first entered service on Cook Strait in 1999 made headlines last year when it ran aground near Picton which began with an autopilot mistake.
The Aratere requires specific loading and unloading infrastructure so it cannot use the other Interislander wharf in Picton while port upgrades there and in Wellington are underway for two new ferries, set to arrive in 2029.
The ship can hold 650 passengers, 230 cars and 28 rail wagons.
Rail Minister Winston Peters said it would have cost $120 million to keep the Aratere in service.
"We will not waste one tax dollar on shuffling infrastructure to keep the vessel in service for the sake of it or add any infrastructure risk to our objective of completion in 2029," Peters said.
KiwiRail Chief Executive Peter Reidy said reducing the Interislander fleet from three ships to two will mean the loss of some roles, but the exact number will depend on a consultation process.
"Aratere is currently due to leave Wellington in late June to go to dry dock in Singapore but we are reviewing that plan as part of the bigger piece of planning now in front of us.
"We will work quickly to give our people, passengers and freight customers certainty as soon as possible."
The Aratere aground in the Marlborough Sounds last year. Photo: RNZ / Angus Dreaver
Reidy said KiwiRail would talk to customers and other parties about the operational arrangements for the transition period to new ships.
"This will include developing a workable ship maintenance programme once we move to two ferries, and de-risking impacts for the Cook Strait market for the four-year transition until the brand new, larger, rail-enabled ferries arrive," he said.
Until the new ferries arrive, rail freight will be road bridged.
"We are well advanced in planning for a two-ship road-bridged ferry service and we will be consulting with the freight market throughout May on operational arrangements to ensure that we have those plans right," Reidy said.
Peters said the Aratere berth in Picton will be demolished and a new, double lane linkspan will be built in its place to serve road and rail for the next 60 years.
He said, in Wellington, the ship's berth would require work done to it which he stated would save the taxpayer "considerable money compared to iReX's brand new infrastructure".
The Rail Minister said KiwiRail had briefed him on their plans for Interislander while work on the ports and ferries was being done.
"Goods will still get from A to B by shifting freight on to the Kaitaki and Kaiārahi, making use of coastal shipping for some heavy freight such as grain, and adapting their rail and ferry schedules to best suit the market," Peters said.
"Passengers will still have capacity, and we may see some evening sailings being busier than normal around Christmas and Easter."
Peters acknowledged the loss of jobs and said the rail company had advised him that voluntary redundancy will be offered across the wider Interislander team, and they will be seeking redeployment opportunities where possible.
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