New Zealand ferry operator KiwiRail has been ordered to pay NZ$400,000 after safety failings linked to the June 2024 grounding of the RoRo ferry Aratere.

The incident occurred on 21 June 2024 after Aratere departed Picton for Wellington. The ferry grounded at Titoki Bay in Picton Harbor with 47 people on board, including 39 crew members and eight passengers. The vessel was refloated the following evening, with no oil spill or hull breach reported.

Maritime NZ’s investigation found the grounding followed a steering system failure after a new steering control system had been installed weeks earlier. The system was intended to work with the ferry’s autopilot and integrated bridge navigation system.

Investigators found that crew members did not know how to control the autopilot when the vessel began heading toward the shoreline. Maritime NZ identified weaknesses in KiwiRail’s change-management controls, including training, familiarization, documentation, steering function control and bridge resource management.

Maritime NZ Director Kirstie Hewlett said steering systems are safety-critical and crews must understand how to operate them and override automatic commands when required. She said the case showed a clear knowledge gap around the newly installed steering console, including emergency use.

KiwiRail pleaded guilty to two charges under the Health and Safety at Work Act 2015. The Wellington District Court ordered the company to pay a NZ$375,000 fine and NZ$25,000 in costs.

Aratere, a 184 m ferry, had operated for KiwiRail for 25 years before being retired in August last year and sold for scrap. The vessel had been Interislander’s only rail-enabled ferry, operating 24 Cook Strait crossings per week, with capacity for 600 passengers, 30 trucks or 230 cars, and 28 rail cars.

The case follows another regulatory fine against KiwiRail in 2024 linked to a ferry blackout involving more than 800 people.