KiwiRail has been sentenced after the Interislander ferry Kaitaki lost propulsion while approaching Wellington Harbour on 28 January 2023, with more than 800 people on board.

The ferry issued a mayday as it drifted south of Wellington in dangerous conditions.

Passengers were mustered and supplied with lifejackets while the ferry regained limited power, eventually making its way to port in Wellington.

All passengers disembarked safely. At the time of the incident, the ferry faced strong southerly winds, with gusts of up to 45 knots and swells of three metres near the entrance to the harbour. Had the anchors failed, the vessel could have run aground at Sinclair Head.

The propulsion failure was caused by a malfunction in a rubber expansion joint, which led to the shutdown of the Kaitaki’s main engine, leaving the ferry adrift.

Maritime NZ Director, Kirstie Hewlett, said the situation was extremely dangerous and commended KiwiRail for pleading guilty.

“There were significant failings that caused the ferry to lose power. Poorly managed maintenance and processes on the Kaitaki meant its passengers, crew, and the environment were put at risk,” Hewlett said. She added that this incident demonstrated the serious consequences of poor maintenance and emphasised the need for operators to ensure their vessels are well-maintained and properly managed.

KiwiRail was fined $412,500 for its breach under the Health and Safety at Work Act and ordered to pay $20,000 in costs.