Aratere: KiwiRail’s ferry grounding leads to significant fine

KiwiRail has faced a $375,000 fine following the grounding of the Aratere ferry. The incident revealed serious safety management failures.

aratere — NZ news

KiwiRail was fined $375,000 for the grounding of the Aratere ferry on June 21, 2024, in Picton Harbour. The incident involved 47 people aboard during a freight sailing between Picton and Wellington.

The ferry ran aground shortly after leaving Picton at 9:45 PM. It was refloated the following evening at Titoki Bay. Fortunately, there were no oil spills or breaches to the vessel’s hull.

The grounding followed changes to a safety-critical steering system on the Aratere. KiwiRail pled guilty to charges under the Health and Safety at Work Act 2015.

A Maritime NZ investigation identified failures in change-management processes and organizational controls. Kirstie Hewlett from Maritime NZ emphasized, “Steering systems are safety-critical. The crew must have a clear understanding of how the systems work and how to override any automatic commands.”

She added that this event sends a clear message to operators about proper training for crews when introducing safety-critical equipment.

The judge also ordered KiwiRail to pay an additional $25,000 in costs. The Aratere was retired after serving 26 years as part of the Interislander fleet.

Maritime NZ prosecuted KiwiRail in June 2025 for breaches related to this incident. The next ruling is expected as investigations continue into safety practices within KiwiRail.