KiwiRail has been ordered to pay a $375,000 fine after the Aratere ferry ran aground in Picton Harbour with 47 people aboard in 2024.
On the evening of June 21, 2024, the ferry was undertaking a freight sailing between Picton and Wellington with 39 crew members and eight passengers when it grounded at Titoki Bay.
The ferry was refloated the following evening.
There were no oil spills and no breaches to the vessel’s hull due to the grounding.
The Aratere ran aground shortly after leaving Picton at 9.45pm on Friday. (Source: Marlborough District Council/Skyworks UAS) (Source: Supplied)
The incident followed changes to a safety‑critical steering system on the Aratere.
In June 2025, Maritime NZ prosecuted KiwiRail for breaches under the Health and Safety at Work Act 2015.
Two months later, the ferry made its final Cook Strait crossing after serving 26 years as part of the Interislander fleet. It was retired to allow for Picton port redevelopment in preparation for two brand-new Cook Strait ferries due to arrive in 2029.
A Maritime NZ investigation found failures in the freight transport company's change‑management processes and organisational controls, including training and familiarisation, documentation, control of critical steering functions, and bridge resource management.
The Picton Habour tugs played a key role in refloating the ferry after it ran aground on Friday night. (Source: 1News)
"Steering systems are safety-critical. The crew must have a clear understanding of how the systems work and how to override any automatic commands," Maritime NZ director Kirstie Hewlett said.
"In this case, there was a clear knowledge gap about how the newly installed steering console worked, including in an emergency.
"This event sends a clear message to operators to ensure Masters and crews are properly trained and provided sufficient time and opportunity to familiarise themselves when introducing safety critical equipment, so that they can correctly undertake all safety critical actions on the vessel."
KiwiRail was today sentenced in the Wellington District Court after earlier pleading guilty to charges under sections 48 and 36 of the Health and Safety at Work Act 2015.
The judge ordered KiwiRail to pay a fine of $375,000 and $25,000 costs.
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