Category: Cook Strait

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International eyes on Cook Strait Ferry fiasco

Source: Maritime Union of New Zealand

The International Transport Workers’ Federation (ITF) Ferry Taskforce is backing the call for the new Interislander ferries to be publicly-owned and rail-enabled.

ITF Ferry Taskforce Chair Ronny Øksnes is in New Zealand to attend the Maritime Union of New Zealand national conference in Wellington.

Mr Øksnes says any decision to privatise the service or take rail from the Cook Strait would endanger Aotearoa’s economic and climate future. 

“We have seen the impact of privatisation of this kind of lifeline service elsewhere in the world and it has inevitably come at great cost to freight customers and to the public.

“Just as significant is the threat that this would pose to rail in Aotearoa New Zealand. Rail produces 70% fewer emissions than road freight and losing that would make it harder to meet international climate obligations.

“There’s also the added cost and risk to any export company that uses rail as part of its domestic supply chain, as the total carbon content of imported goods is becoming more and more important to international consumers.

“The rest of the world is taking carbon out of their supply chains, so putting more in would be a backward step for Aotearoa New Zealand’s exporters.

ITF Maritime Policy Adviser Sadie Saunders, also in New Zealand this week, says “We understand the New Zealand government is concerned about cost, however transport infrastructure is a long term investment that ensures good jobs and efficient supply chains. These are projects that should be measured across decades and in the context of the whole economy.

“This is why we are supporting our Aotearoa New Zealand affiliate members’ calls for new ferries to be publicly owned and rail enabled.”

The International Transport Workers’ Federation (ITF) is a democratic, affiliate-led federation recognised as the world’s leading transport authority. It represents, and is democratically guided by, 16.5 million transport workers internationally.

 

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Ferry fiasco hangs over PM’s South Korea trip

Source: Maritime Union of New Zealand

Sorting out the mess his Finance Minister has made of the interisland ferries deal should be the key outcome of the Prime Minister’s visit to South Korea, says the Maritime Union of New Zealand (MUNZ).

The cancellation of the deal, which has been under negotiation for eight months now, is expected to cost the taxpayer up to a half a billion dollars – a cost that comes on top of another half a billion dollars of sunk costs in the project.

MUNZ National Secretary Carl Findlay says the current state of limbo created by this failure is unacceptable. “It is astounding that more than a half a year after the Finance Minister cancelled this vital project there has been no resolution.

“It is bad enough that the government clearly had no plan B for the only rail-freight service we have on Cook Strait – the fact that we are still waiting for final cancellation or renegotiation of this deal is madness.

“Nicola Willis’ ferry fiasco isn’t just costing us money, it has put the kibosh on the biggest economic deal between South Korea and New Zealand in years, and risks souring relations between our countries. 

Prime Minister Luxon needs to use his much-vaunted international business experience to sit down with the South Koreans and find a way through this expensive fiasco as soon as possible.

“We have to get on with replacing the ferries we have. At best Kiwirail will be able to eke out another five years of service from them; it can take longer than that to design and build new ships. If the government doesn’t settle this cancellation soon, or renegotiate to get Hyundai to build new ferries, we will run out of time.

“That’s a huge and urgent threat to freight customers, our economy, and our international reputation.

“No matter what happens, the reckless decision to cancel the build contract, just days before the steel was to be cut for the hulls, has put New Zealand in a terrible position.

“We need the Prime Minister to call time on the situation, front up on the cost his government has put on us and work to get a contract struck for publicly owned, rail-enabled ferries immediately. 

The foolish decision to cancel a project that was more than six years in the making has cost us too much already.”

MUNZ is New Zealand’s largest Maritime union and is affiliated with more than 200 maritime unions internationally.

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Government ferry decision a case of political steering failure

Source: Maritime Union of New Zealand

The Maritime Union says the Government’s U-turn on purchasing new Interislander ferries is the predictable but costly outcome of flawed decision making.

The Government has said it is now looking at building new ferries again following the advice of the Ministerial Advisory Group.

Maritime Union of New Zealand National Secretary Carl Findlay says the grounding of the Aratere last week has now brought home the seriousness of the situation of our inter-island ferries.

“The iRex project for new ferries and terminals should have been reconfigured rather than cancelled outright.”??

He says the claimed savings by the Government do not stack up.  

“There needs to be an accounting of costs incurred up to now, including any break fees, a far higher price point for new builds ordered now, and a probable five year wait for new vessels to come into service.”

Mr Findlay says industry sources have suggested that the all up cost of the new builds could be up to $1.2 billion – more than double the $551 million cost of the vessels for the cancelled iRex project.

The current ferries will all be well over thirty years old by 2029. Maintenance costs have doubled on the ageing ferries to an estimated $65 million a year.

Mr Findlay says it is unacceptable that crew and passengers will be exposed to risk caused by failure to invest in ferries and infrastructure.

He expressed grave concern the proposed new ferries would not be rail capable.??

“This means double handling of containers, adding substantial costs for freight customers, delays and undermining the supply chain.”

Mr Findlay says none of this takes into account that the Picton and Wellington ferry terminals both still require modernization.

The Maritime Union says new ferries have to be rail capable and there needs to be a plan for terminal upgrades in both Wellington and Picton.