Rail Minister Winston Peters says the decision by the KiwiRail board to retire the Aratere is focused on the long-term future of Cook Strait rail operations.
Ferry Holdings, the Crown-owned company charged with negotiating ferry procurement contracts for two new inter-island ferries, supports this decision, he says.
“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. That would have cost $120 million.
“Building marine infrastructure while ferries are berthing there can’t be done.”
Peters says work on the Aratere’s Wellington berth would save taxpayers significant money compared to the previously planned iReX programme.
In Picton, the Aratere’s berth will be demolished to make way for a new dual-lane linkspan designed to handle both road and rail freight for the next 60 years.
“Under iReX, a whole temporary operation was to be built at taxpayers’ expense only to knock it down when permanent infrastructure was built, plus ‘Taj Mahal’ terminal buildings and expensive works across the wider yards in Wellington and Picton. That is not good use of funds, and we are getting the taxpayer a superior deal,” Peters says.
Peters says KiwiRail has outlined plans to manage the transition using the remaining ferries, Kaitaki and Kaiārahi, along with alternative transport methods.
“KiwiRail has briefed us on their plans to serve the market in the interim. 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.
“Passengers will still have capacity, and we may see some evening sailings being busier than normal around Christmas and Easter,” he says.
On the issue of jobs, Peters acknowledged the impact of the change.
“We know that job losses are hard. KiwiRail advise us that voluntary redundancy will be offered across the wider Interislander team, and they will be seeking redeployment opportunities where possible,” he says.
