KiwiRail, the operator of ferries between New Zealand’s north and south islands, has been fined $266,000 with costs following a 2023 incident that endangered the lives of more than 800 people on board the ropax ‘Kaitaki’.
Maritime New Zealand filed charges against KiwiRail after an investigation found the company had installed an outdated critical engine gasket, which was overdue for replacement when it failed, causing the vessel to have a black out.
“This is an alarming example of what can go wrong when maintenance is poorly managed,” said Kirstie Hewlett, Maritime New Zealand Director.
“We have been clear to KiwiRail about our expectations around the management of its fleet, and KiwiRail has undertaken significant work since.”
The incident took place on 28th January, 2023, when the 1995-built ‘Kaitaki’, which had been operating for KiwiRail since 2005, suffered a blacked out as she was approaching Wellington, with over 800 people on board.
Having departed Picton at 14.00 and three hours later when she was near Sinclair Head outside Wellington, she lost power. The crew dropped anchor and declared a mayday, while passengers were mustered and given life jackets.
At the time, strong southerly winds were gusting up to 45 knots and the swells were up to nearly 10 ft near the entrance to Wellington harbor.
Maritime NZ said in its report that if the anchor had not held, the vessel would have been driven onto the rocks. It took about an hour to restore power and the ship limped into Wellington escorted by a tug and berthed around 21.00.
A subsequent investigation found that a rubber expansion joint that was 18 years old and overdue for replacement under both the manufacturer and company guidelines, had failed.
KiwiRail confirmed in the days after the incident that there had been a leak in the vessel’s engine cooling system causing a loss of pressure and, as a result, automatic sensors shut down all four engines to prevent overheating.
New Zealand’s Transport Accident Investigation Commission (TAIC) later reported there were a dozen gaskets on board the vessel and that the one that failed had been manufactured in 2005.
Two others on board the vessel were also found to be 13 years old.
Maritime Union of New Zealand National Secretary, Carl Findlay issued a statement after the verdict saying the failure should never have happened. The union also reiterated a call for the fleet to be replaced.
“But you can’t look at this without the bigger picture,” said Findlay. “This is critical infrastructure that is ageing out and has been underfunded by successive governments for years.”
KiwiRail had ordered new ferries from South Korea’s Hyundai Mipo Shipyard. However, the government refused to fund the project in 2023 and the order was cancelled earlier this year.
The current fleet was built between 1988 and 1998 and has had a series of problems. In June, the ‘Aratere’ went aground after leaving Picton. She was refloated the following day with the aid of tugs.

