KiwiRail to Retire Aratere Ferry, Prioritizing Long-Term Cook Strait Strategy

Minister Peters emphasized that this retirement is not just about one vessel, but about ensuring robust, future-ready infrastructure across Cook Strait for the next six decades.

In a pivotal move that underscores the future of New Zealand’s inter-island transport, the KiwiRail board has decided to permanently retire the Aratere ferry from service. The decision, supported by state-owned Ferry Holdings and championed by Minister for Rail Winston Peters, signals a fundamental shift in strategy—prioritizing sustainable infrastructure and financial prudence over short-term fixes.

A Vision for the Next 60 Years

Minister Peters emphasized that this retirement is not just about one vessel, but about ensuring robust, future-ready infrastructure across Cook Strait for the next six decades.

“We will not waste one tax dollar on shuffling infrastructure to keep the vessel in service for the sake of it or add any infrastructure risk to our objective of completion in 2029,” said Peters. “That would have cost $120 million.”

The ageing Aratere has served the route for over two decades. However, with significant work required on its dedicated berth in Wellington, the government sees this as an opportunity to streamline infrastructure investments. Instead of patching up aging assets, Peters said, the plan is to prepare for a new, modern system with long-term durability.

Infrastructure Overhaul: Strategic Changes in Wellington and Picton

A key benefit of retiring the Aratere is that construction work on marine infrastructure can now proceed uninterrupted.

“Building marine infrastructure while ferries are berthing there can't be done,” Peters noted, highlighting the logistical obstacles of maintaining ferry operations during berth upgrades.

In Wellington, improvements to the current Aratere berth will yield taxpayer savings compared to the more extravagant infrastructure that was proposed under the iReX project. In Picton, the berth will be demolished to make way for a new double-lane linkspan, designed to cater to both road and rail freight, ensuring seamless operations well into the future.

The iReX plan had included elaborate temporary facilities and premium terminal buildings—dubbed the "Taj Mahal" by Peters—seen as wasteful in hindsight.

“That is not good use of funds, and we are getting the taxpayer a superior deal,” Peters asserted.

Ensuring Freight and Passenger Continuity

Despite the withdrawal of Aratere, Peters assured the public and industry stakeholders that freight and passenger services across the Cook Strait will remain operational.

KiwiRail has adjusted its strategy to maintain logistics continuity. The Kaitaki and Kaiārahi ferries will absorb the freight volume, with some heavy freight, like grain, redirected via coastal shipping. Schedules will be refined to ensure minimal disruption, and passengers may see increased evening sailings during peak times like Christmas and Easter.

“Goods will still get from A to B,” Peters affirmed.

Employment Impacts and Redeployment Support

The announcement inevitably raises concerns about employment. Peters acknowledged the human cost of the transition, noting that KiwiRail will offer voluntary redundancy across the Interislander workforce.

The company will also prioritize redeployment opportunities where feasible, aiming to retain valuable staff within other parts of the organization.

“We know that job losses are hard,” Peters said empathetically, “and KiwiRail advises us that they are working on support strategies.”

A Strategic Reset

The decision to retire Aratere represents a broader reassessment of how public money is used in New Zealand’s transport sector. Rather than investing in temporary measures that would soon be obsolete, the government is choosing a longer-term path that aligns with infrastructure completion goals for 2029.

This approach, according to Peters, ensures not only better value for taxpayers but also a transport system better suited to evolving freight and passenger demands across Cook Strait.