KiwiRail will soon face court after an Interislander ferry lost power and issued a mayday call while near Wellington’s south coast in January last year.

Maritime New Zealand today confirmed it has filed a single charge against KiwiRail under the Health and Safety at Work Act, after an investigation into procedures around safety and maintenance.

The Kaitaki had more than 800 people on board for its 2.15pm sailing to Wellington on January 28 last year. But shortly before 5pm, the ship reported engine problems.

Only 10 minutes later, it issued a mayday call after all four engines shut down amid a raging southerly. The engines automatically turned off to prevent them from overheating.

The mayday call sparked an immediate response from emergency services and the public as the ferry came dangerously close to rocks.

Six other vessels swiftly made their way to the Kaitaki, including the Aratere, police patrol vessel the Lady Elizabeth IV, two tugs, a pilot boat and a fishing boat.

Five rescue helicopters were also called and a cordon was erected at Owhiro Bay Pde near Red Rocks. One of the largest 4WD clubs in the country was called in to help and 30 vehicles made their way to the south coast with blankets, woollen hats and hot water.

At around 7pm, all four engines were restarted and the ferry safely made its way into Wellington Harbour.

“The investigation took 12 months; it involved reviewing the operator’s organisational information relevant to processes and procedures connected to safety and maintenance management, undertaking interviews and examining the Kaitaki after the incident occurred,” Maritime New Zealand director Kirstie Hewlett said in a statement.

“Material was then comprehensively reviewed before the decision was made to prosecute.”

Today, KiwiRail chief executive Peter Reidy said the safety of passengers and staff is always the highest priority.

“The safe and reliable operation of the Interislander service is an absolute non-negotiable requirement for KiwiRail board and management. Following the Kaitaki incident, we conducted a full review of all of our asset management practices, using global experts to ensure we are running the Interislander to world’s best practice standards.

KiwiRail chief executive Peter Reidy says safety is always the number one priority. Photo / NZME

“We are pleased that over the recent busy Christmas period, the Interislander ferries have operated with 100 per cent asset reliability and 91.4 per cent on-time performance. For comparison, these are levels matching even the best operators in the global aviation industry.”

Both Maritime New Zealand and KiwiRail said they could not comment further as the matter is before the court.

In mid-December, Finance Minister Nicola Willis refused a $1.4 billion funding request for Kiwirail’s iReX project, which would have seen the arrival of two new ‘mega ferries’ and new portside infrastructure.

While the last publicly available cost estimate for the new ferries and portside infrastructure was $1.45b, Finance Minister Nicola Willis said the project had doubled to just over $3b, which the government wasn’t prepared to fund.

Responding to the news of today’s prosecution, the Maritime Union’s national secretary Craig Harrison said Kiwirail was placed in an impossible position by the government due to long-term underfunding over decades.

“We have a ridiculous situation where the government regulator is having to prosecute a state-owned enterprise for ferry problems, but the Government has just cancelled new ferries that would solve the problem.

“The real issue here is historic underinvestment in ferries and coastal shipping over several decades, which has led to a crisis point in the safety and reliability of our supply chain.”

Ethan Griffiths covers crime and justice stories nationwide for Open Justice. He joined NZME in 2020, previously working as a regional reporter in Whanganui and South Taranaki.