In March this year, Straits Shipping, operators of the Bluebridge Cook Strait ferries, announced the purchase of a new ferry. The nearly 28,000 tonne Livia, built in 2008, was bought to replace the 28 year-old Strait Feronia, in service with Bluebridge since 2015.
The Livia arrived in Wellington
earlier this month and began service on the Cook Strait run this week. No
terminal renovations have been required in either Picton or Wellington to
accommodate the Livia, which will carry around 375 passengers and 200 cars.
Morgan Stanley Infrastructure, owners of Straits Shipping since 2022, have not
disclosed the Livia's purchase price nor how long the purchase negotiations
took.
In sharp contrast to Bluebridge's
apparent time-frame for replacing the Strait Feronia, back in 2018 the then
Labour/New Zealand First coalition government launched the IREX project to
replace the publicly owned Interislander line's three aging ferries. Three
years later, in June 2021, Kiwirail, the operator of the Interislander ferries,
signed a contract with Korea's Hyundai Mipo shipyards to build two new rail
enabled ferries. They were projected to enter service in 2026. The cost of the
project was estimated to be $1.45 billion.
But just over two years later, by
the time the current National/Act/New Zealand First coalition had taken office,
the project's cost had more than doubled to $3.1 billion. There were estimates
the cost could even climb as high as $4 billion by the time the ships were
delivered.
However, the massive explosion in
costs was not related to the ships - their cost remained relatively static -
but in the costs of upgrading shoreside facilities on both sides of Cook Strait
to accommodate the new ferries. It was therefore no real surprise that the new
government cancelled the project and went back to the drawing board, looking
for a "Toyota Corolla rather than a Rolls Royce solution" as Finance
Minister Nicola Willis said at the time.
Earlier this year, the government announced
a revised programme for building two new rail-enabled ferries to be in service
by 2029, with substantially pared back shoreside facilities. As part of the
plan, the trouble-plagued 26 year-old Aratere will be withdrawn in a few weeks.
Its withdrawal will mean there will be no rail-enabled ferries on Cook Strait,
until the new ships arrive in 2029. By that time, the Interislander's two
remaining ferries, Kaiārahi and Kaitaki, will be 31 and 34 years old
respectively. They will be long overdue for replacement - only the
Tamāhine has served longer on the Cook Strait route, from 1925 to 1962.
And, in sharp to contrast to
Bluebridge, Interislander's ferry replacement programme will have taken just
over eleven years, assuming no further delays. Also by 2029, Bluebridge's other
ferry, the 500 passenger, 200 car, Connemara, will be coming up for
replacement. But even then it will still be younger than Interislander's
ferries are today.
Bluebridge and the Interislander
have an almost equal share of the Cook Strait passenger and vehicle traffic.
Together, they are a vital transport link between the North and South Islands.
It is in the interests of both the travelling public and the freight and
transport industries that they provide a safe and reliable service across Cook
Strait. Yet both have had their share of incidents with their ships in recent
years, raising concerns about the age and resilience of the ferries.
Given this concern, and the lengthy
nature of Interislander’s current ferry replacement programme, there must
inevitably be questions about the durability of the Cook Strait service until
the new ferries arrive in 2029. While Bluebridge has future-proofed its
operation, at least for the medium-term, by the acquisition of the Livia at the
mid-point of its life, the same cannot confidently be said for the
Interislander. Kaitaki and Kaiarahi are already old ships, with the prospect of
at least four to five years more service, without major incident, ahead of
them. That is a bold assumption.
Whereas Interislander’s keenness to
buy new ferries for the first time since the building of Aratere in 1999 is
understandable, it stands in sharp contrast to Bluebridge’s strategy of
purchasing mid-life ships and turning them over every decade or so. With the
cost blow-outs associated with the original IREX project and the delays
associated with the refocusing of the ferry replacement programme, taxpayers
might be forgiven for wondering whether the more short-term approach of
Bluebridge has greater merit.
Livia’s first Cook Strait crossing
this week, just a couple of weeks after arriving in New Zealand, and just over
four months after its purchase, will add fuel to that question.