KiwiRail Fined After Ferry Incident

The Kaitaki Interislander ferry anchored off Wellington's rocky south coast in rough weather when it lost power in January 2023. Photo: KiwiRail.
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KiwiRail has been fined $432,500 after the Kaitaki Interislander ferry lost power with over 880 passengers on board. The incident occurred on January 28, 2023, when the ferry lost propulsion near Wellington Harbour, prompting a mayday call. The crew restored partial power, allowing the ferry to reach port with the help of tugboats.

The Wellington District Court sentenced KiwiRail, which pleaded guilty to exposing passengers to risk under the Health and Safety at Work Act. Victim impact statements highlighted the fear many passengers experienced, with some comparing the event to the Wahine Disaster.

Interislander general manager Duncan Roy apologised and reassured passengers that KiwiRail had addressed the systematic issues behind the incident. “We are focused on providing a safe and reliable service,” says Roy.

An investigation revealed that a rubber expansion joint, installed in 2018, had failed due to age and high temperatures. The court found KiwiRail was aware of the part’s risk but failed to address it in time. Judge Peter Hobbs also noted the company’s poor safety record but acknowledged KiwiRail’s early guilty plea and remedial actions, which reduced the fine.