KiwiRail is working with all parties to find an integrated ferry and terminal solution that continues to deliver a reliable service to move freight and people across the Cook Strait, says Chief Executive Peter Reidy.
KiwiRail, Ministry of Transport and Treasury today released documents relating to the iReX Project which was set up to deliver a resilient Interislander ferry service and robust port infrastructure with a 100-year design life.
Peter Reidy says the documents show the extent of work undertaken to find a workable solution to deliver the iReX project.
“iReX was a complex project designed to deliver an integrated transport system across the Cook Strait including two new ferries and upgraded port infrastructure. The terminal construction projects were complex, with both ports situated in seismically challenging environments. Among other factors, iReX costs were impacted by the heightened awareness of seismic risk and vulnerability following the Kaikoura earthquake, and unforeseen materials and labour cost increases in the post-Covid world.”
Peter Reidy said that when he joined KiwiRail in August 2022, he and the Board immediately appointed a lead construction partner to review the infrastructure designs and prepare construction methodology and pricing, which is standard practice in projects of this size.
KiwiRail also established an independent governance group, comprising people with significant civil construction and marine experience to oversee the project throughout its life. There were formal reviews by external third parties and global experts. All analysis and information was regularly provided to the Ministry of Transport and Treasury.
“In the current economic environment, and with the fiscal challenges facing New Zealand, KiwiRail understands, respects and accepts the decision by our shareholder, the Government, not to continue funding the project. A small amount of work in Wellington and Picton continues to ensure both sites are left operationally safe and functional for our existing operations and to get roads re-opened in Picton.
“KiwiRail is now looking to the future and working with all parties to deliver a reliable, safe and workable solution to delivering the iconic Interislander service,” Peter Reidy says.
“In the past year, we have been working international experts DNV (Det Norske Veritas) to conduct a full review of our fleet management practices, ensuring we are running Interislander to world’s best practice standards. That work is bearing fruit, with our fleet operating at 99 per cent reliability and 92 per cent on-time performance against our schedule across the peak season from December 2023 to April 2024.
“In April, which included the busy Easter holiday, on time performance for customers increased to 98 per cent. As a result of our consistent service performance we recorded record passenger volumes sailing with us during February and March.
“We are also working with DNV to see how we extend the safe and economic working lives of the existing fleet and actively looking for second-hand replacement ships, should any become available.”
Peter Reidy said KiwiRail would now work with the port companies as they considered future infrastructure development of their assets, which would rely in part on what options were progressed to replace the Interislander fleet.
“KiwiRail remains committed to operating the Interislander service. We have run the service for over 60 years, and we want to continue to run it for another 60 as part of an integrated rail network supporting New Zealand businesses, passengers and our visiting tourists,” Peter Reidy says.
“We are working with the Government’s Ministerial Advisory Group, Ministry of Transport, Treasury and all stakeholders to continue providing a connected, safe and reliable ferry and terminal system for the benefit of New Zealand. We are confident a solution will be found and we look forward to getting on and delivering it with all stakeholders across the Cook Strait transport system.”
ENDS