KiwiRail must pay $432,500 after its Kaitaki Interislander ferry lost power with over 880 people on board in January 2023. This incident happened on January 28 when the ferry was entering Wellington Harbour and lost propulsion, leading to a mayday call. The crew dropped anchors and gave out life vests, but later restored some power to bring the ship safely to port with help from tug boats.
Maritime New Zealand charged KiwiRail under the Health and Safety at Work Act after an investigation into this event. Victim impact statements revealed that many passengers found the experience very scary, with some comparing it to the Wahine Disaster. One passenger mentioned that the incident affected them long-term, especially with a recent ferry grounding on June 21.
A former police officer praised the crew for their handling of the situation during his statement in court. Though the maximum fine could have been $1.5 million, the court ordered KiwiRail to pay $432,500, including case costs.
After the ruling, KiwiRail assured the public that they had fixed the problems that caused the incident. Interislander general manager Duncan Roy expressed regret for the distress felt by passengers and thanked the court. He acknowledged that gaining trust is difficult and asked customers who lost trust to consider using their services again.
An interim report stated that the ferry’s engine failure was due to a faulty rubber expansion joint. This part was old and had not been replaced as recommended. Judge Peter Hobbs noted that KiwiRail should have been aware of the risk and held a poor safety record in past ferry services.
Hobbs also mentioned that KiwiRail’s early guilty plea and actions taken to improve safety helped to reduce their fine. Recently, a passenger from the same ferry sailing received compensation for the service being “not fit for purpose.”