Kiwirail has been fined $412,500 and ordered to pay $20,000 in costs over an incident that saw the Kaitaki Interislander ferry lose power as she approached Wellington in January 2023.
The sentencing took place in the Wellington District Court today.
The incident sparked multiple investigations, including a year-long investigation by Maritime New Zealand, which led to a charge under the Health and Safety at Work Act.
More than 800 passengers and 80 crew were onboard when the main engine failed at about 5pm on January 28, 2023. A mayday call was made and preparations were made to evacuate the ship.
Passengers reported the ferry drifted until the anchor was dropped. Power was restored after 70 minutes and the ferry moved to the port in Wellington, escorted by tugboats.
Thirteen victim impact statement were read out in court by the prosecution and one was read out by a passenger.
Speaking in court, one man said KiwiRail's handling of the incident gave him confidence.
"I was aware of how serious it was, was in contact with people on shore who were aware of the steps being taken on the shore to ensure the emergency services were ready for a possible mass casualty situation.
"I also noticed life rafts were being lowered so they were definitely preparing to evacuate the ship," he said.
"I felt confident they all knew what they were doing and at no time did I feel unsafe, traumatised or stressed out," he said.
"I put it down to those good systems, good training and professionalism."
Another passenger, in a statement read to the court, said it was a stressful time for those on board.
"I was watching us head towards the rocks on our GPS, saw the Coastguard and another ferry on standby, life rafts were ready for deployment.
"It was frightening and I only realised how much of an untenable situation we were really in when we were disembarking in Wellington. I cried in relief."
One passenger told 1News she hopes the sentencing is a warning to all businesses responsible for people's safety. (Source: 1News)
They said the crew did their best to keep everyone distracted and provided free food and water. Many people were sick.
Another man, who was travelling with his four children, said one of them was convinced they were going to drown. A year later, his children did not want to travel on the ferry to visit family in the South Island.
Another praised the crew, but said there were people filming final videos for their families. There was also an issue with getting people out of lifts when the power went out.
"It was a pretty traumatic event, not based on what we went through, but based on what we came so close to having to go through."
A number said they had no desire to travel on the Interislander again.
KiwiRail's Interislander executive general manager Duncan Roy read out an apology, and acknowledged the fear and distress experienced by those on board.
"We have learned. Safety is our top priority, we have taken a series of steps to prevent a similar incident."
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