KiwiRail Fined Following Ferry Grounding Incident
KiwiRail has been fined $375,000 after its ferry, the ‘Aratere’, which has since been renamed ‘Vega’, ran aground in Picton Harbour. The incident occurred on the evening of June 21, 2024, while the ferry was transporting freight from Picton to Wellington. At the time, there were 47 people on board, including 39 crew members and eight passengers. The accident took place shortly after the vessel departed from Picton at 9:45 p.m.
The grounding incident followed modifications to the ferry’s safety-critical steering system. In June 2025, Maritime New Zealand (MNZ) initiated legal action against KiwiRail, citing violations under the Health and Safety at Work Act 2015. The Wellington District Court sentenced KiwiRail on May 5, 2026, after the company pleaded guilty to the charges. The judge imposed a fine of $375,000 along with costs amounting to $25,000.
An investigation by Maritime NZ revealed significant shortcomings in KiwiRail’s change-management processes, particularly concerning training and documentation related to the new steering system. The investigation highlighted a lack of understanding among the crew regarding the operation of the new steering console, especially in emergency situations. In August 2025, the ‘Aratere’ made its final journey across the Cook Strait after 26 years of service before being retired to facilitate redevelopment at Picton port for two new ferries expected to arrive in 2029.
Retired Ferry’s Port Booking Cancelled Amid Crew Concerns
The ‘Vega’, formerly known as the ‘Aratere’, has faced delays in its scheduled visit to Port Nelson for water and supplies. The ferry has been anchored in Tasman Bay for nearly four months with approximately 20 crew members onboard. A planned booking for the vessel to enter Port Nelson was recently cancelled, pushing back its anticipated arrival. The ship is now expected to reappear on the shipping schedule next week, although this is subject to change.
Maritime NZ had intended for an inspector to board the ferry prior to the cancellation. However, no updates have been provided regarding its entry into Nelson since then. The ship is registered in Saint Kitts and Nevis, which means that New Zealand’s labor laws do not apply to its crew. Concerns raised by the Maritime Union of New Zealand (MUNZ) indicated that the crew may not be receiving wages that meet International Labour Organization standards.
Despite assurances from the master and agent of the vessel regarding crew welfare, MUNZ has requested an independent welfare inspection to ensure that the crew is safe and adequately compensated. KiwiRail sold the ferry in October 2025 to Jahaj Solutions (F.Z.E), which plans to send it to a shipbreaking yard in India. The vessel remains in Tasman Bay due to paperwork issues related to its departure from New Zealand.
Welfare Concerns for Crew of the Former ‘Aratere’
The Maritime Union of New Zealand (MUNZ) has expressed serious concerns regarding the welfare and pay of the crew members aboard the ‘Vega’, formerly the ‘Aratere’. The vessel has been anchored in Tasman Bay for over 50 days, awaiting permission to sail to India for dismantling. MUNZ has called for an independent welfare inspection, emphasizing the need to ensure that the crew receives fair treatment and proper wages.
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Reports indicate that crew members have been on board for nearly two months while the ship remains at anchor. Contracts reviewed by the union show that the vessel is registered to Jahaj Solutions (F.Z.E), based in the UAE. It has been reported that an able seaman aboard is earning a basic wage of only $206 per month, significantly below the International Labour Organization’s minimum wage, which has risen to $690 per month as of January 1, 2026. Even with overtime and allowances, the total pay for an able seaman is reported to be around $550 monthly.
While the master and agents have assured that the crew is in good health and receiving adequate provisions, there has been no independent verification of these claims. Maritime NZ has stated that it is monitoring the crew’s welfare, but no specific actions are currently planned regarding the ‘Vega’. The delays in the vessel’s departure are attributed to necessary regulatory approvals for export and import. KiwiRail previously announced the sale of the ‘Aratere’, and once ownership is transferred, the responsibility for the crew and voyage management will lie with the new owner. The Environmental Protection Authority has confirmed that the export application from New Zealand is complete, pending import consent from Indian authorities.
