Category: shipping

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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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Maritime Union commemorates Merchant Navy Day 2024

Source: Maritime Union of New Zealand

The Union representing New Zealand seafarers is commemorating Merchant Navy Day, held internationally each year on 3 September.

Maritime Union of New Zealand National Secretary Carl Findlay says Merchant Navy Day holds profound significance for the Maritime Union “as we remember our seafaring members past and present.”

“In the great conflicts of the 20th Century, seafarers showed courage and resilience. Their work ensured the safe passage of essential supplies, troops, and equipment.”

Mr Findlay says global conflict continues to impact on the safety and wellbeing of seafarers in international waters.

He says as we reflect on the past, we must consider the challenges faced by modern-day seafarers. 

“As an island nation, Aotearoa New Zealand relies heavily on seafarers, and the vast majority of New Zealand’s goods continues to be carried by sea.”

Mr Findlay says the maritime industry has evolved, but the life of a seafarer remains demanding and fraught with difficulties. 

Long periods away from home, isolation, and the physical and mental toll of the job are just a few of the issues seafarers contend with. 

The COVID-19 pandemic had a major impact, with many international seafarers stranded at sea for extended periods, unable to return to their families. 

Mr Findlay says the Maritime Union of New Zealand is committed to advocating for seafarers’ rights, ensuring fair working conditions, and providing the support they need. 

The Maritime Union of New Zealand is affiliated to the International Transport Workers’ Federation, which represents over 1 million seafarers in over 200 seafarers’ unions across 106 countries.

MUNZ is also working for the future of New Zealand coastal shipping.

Mr Findlay says New Zealand faces a crisis in our seafaring workforce due to a shrinking number of New Zealand flagged and crewed vessels, an ageing workforce and lack of training opportunities.

“Today, as we pay tribute to our seafarers of the past and present, let us also advocate for a new generation of New Zealand seafarers.”

He says we must continue to work for a maritime industry that values and respects its workforce. 

“This means investing in training, ensuring safe working conditions, and rebuilding our New Zealand merchant fleet.”

Mr Findlay says the task today is to continue to represent New Zealand seafarers and campaign for a strong New Zealand merchant fleet, and to play our role in defending the rights of all seafarers who work in our waters.

The Merchant Navy in history: background

During the Second World War, thousands of New Zealand seafarers volunteered to serve in the Merchant Navy.

They sailed shipments of fuel, food and other essential supplies across the world, and delivered troops and military equipment where they were needed.

The work was important and extremely dangerous. 4,700 Allied merchant ships were sunk during the conflict, and 30,000 Allied merchant seamen lost their lives.

This included New Zealand ships like the Turakina and the Limerick, and at least 140 Kiwi merchant seafarers were killed with a similar number taken prisoner.

The Merchant Navy faced greater danger than any other group of New Zealand civilians. Their sacrifice and heroism will be remembered.

Maritime Union in history

The Maritime Union and its predecessors have the longest history of any union in New Zealand.

MUNZ was formed when the Waterfront Workers’ Union and New Zealand Seafarers’ Union joined together in 2002.

The first Seamen’s Union was formed in 1879 and it was a trans-Tasman Union with members in Australia and New Zealand. 

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Grounding of Manahau barge at Westport raises major questions

Source: Maritime Union of New Zealand

The Maritime Union says the grounding of the barge Manahau overnight near Westport raises major questions.

Maritime Union of New Zealand National Secretary Carl Findlay says concerns had been previously raised by New Zealand seafarers about the foreign crew and flag of the barge.

He says the cause of the grounding has yet to be confirmed, but the difficult local conditions at Westport including recent poor weather would be obvious issues to consider.

There had been no reports of injuries, which was fortunate as the West Coast was a notoriously treacherous maritime environment.

The 97.53-metre and 3706-GT self-powered barge Manahau had only just come into service in August 2024 carrying mineral sands out of shallow draught port Westport to Nelson.

Mr Findlay says the Manahau did not have a New Zealand crew and the flag state was Niue. 

“Vessels such as the Manahau operating in New Zealand’s unique and challenging maritime environment should be crewed by experienced New Zealand seafarers.”

The operators of the Manahau had benefited from Government funding for the vessel.

Mr Findlay says it had been extremely disappointing to see this substantial Government funding go towards a vessel operating in New Zealand waters that was neither New Zealand flagged nor crewed.

“In the last several years, we saw an upsurge in New Zealand crewed coastal shipping, but this is now going backwards with the loss of coastal shipping services, or in this case, failing to provide jobs for skilled local crews.” 

“New Zealand needs to build its coastal shipping capacity, and that means New Zealand owned, operated and crewed ships.”

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Ferry report does not solve the big problem

Source: Maritime Union of New Zealand

The Maritime Union has sounded a note of caution about the seaworthiness of Interislander ferries.
KiwiRail has today released a summary of a maritime assessment of the three Interislander ferries carried out by DNV, which says the ships are in reasonable condition.
Maritime Union of New Zealand National Secretary Carl Findlay says the Union appreciates the efforts being made by KiwiRail, but members on the ferries had real concerns about health and safety.
“Our members crew those ferries, so if something does go wrong they are placed in danger.”
Mr Findlay says the Union is treating the conclusions of the DNV report with caution.
He says keeping the current vessels running until the end of the decade is a stop gap measure at best.
“There have been a number of technical issues with the ferries already, some with potentially very serious outcomes, and the fact remains that there are many ageing systems and components in service on the ferries.”
Mr Findlay says that KiwiRail has been put in an impossible position.
“KiwiRail doesn’t really have any choice but to soldier on with end of life vessels and push up maintenance costs and maintenance time for the ships.”
He says the main problem remains – there is no clear indication yet what the Government has planned in place of the iRex project it dumped last year.
Mr Findlay says the full cost of abandoning the iRex project is yet to be determined and would possibly wipe out any savings on new ferries and terminal infrastructure.
 

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Prosecution exposes lack of Government ferry plan  

Source: Maritime Union of New Zealand

The Maritime Union is calling on the Government to review its decision to dump planned new Cook Strait ferries after the prosecution of a ferry operator.

Industry regulator Maritime NZ has filed a charge under the Health and Safety at Work Act against KiwiRail this week in relation to the January 2023 loss of propulsion incident involving the Interislander ferry, Kaitaki.

The Kaitaki lost power on its approach into Wellington Harbour on 28 January last year, with more than 800 passengers and 80 crew on-board. It then issued a mayday. After regaining limited power, the ferry made its way to port where its passengers were able to safely leave it and come ashore.

Maritime Union of New Zealand National Secretary Craig Harrison says the most important sea link in the country is in jeopardy.

“We have a ridiculous situation where the Government regulator is having to prosecute a State owned enterprise for ferry problems, but the Government has just cancelled new ferries that would solve the problem.”

He says Maritime New Zealand is simply doing its job, but KiwiRail has been placed in an impossible position by the Government due to long term underfunding. 

“The real issue here is historic underinvestment in ferries and coastal shipping over several decades, which has led to a crisis point in the safety and reliability of our supply chain.”

Mr Harrison says two new modern ferries and new terminals had been planned as part of the iRex ferry upgrade project, but were effectively cancelled in December 2023 when the new Government withdrew support for the project.

“The decision by the Government to walk away has left a credible solution to the ferry issue in limbo.”

Mr Harrison says the current Interislander ferries are at their end of life, and replacing them with other ageing vessels was just kicking the can down the road.

He says it would be unacceptable if State Highway One was allowed to fall to pieces, yet the ‘blue highway’ of Cook Strait was an extension of our main road and rail links.

Mr Harrison says the possibility of another serious incident is very real despite the best efforts of KiwiRail. 

He says failure to modernize this essential infrastructure leaves New Zealand exposed to further delays, service outages, expense for industry, and safety issues, with our main inter-Island connection. 

A review of the ill-judged decision to cancel the iRex project needed to take place, he says.

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Red Sea situation highlights need for New Zealand shipping

Source: Maritime Union of New Zealand

The Maritime Union says the conflict in the Red Sea highlights the need to build up New Zealand crewed and flagged shipping to overcome supply chain disruptions.

Yemen-based Houthi rebels have been attacking merchant ships in the Red Sea as the Gaza conflict threatens to spill into a wider regional conflict in the Middle East.

Maritime Union of New Zealand National Secretary Craig Harrison says New Zealand needs to build its shipping capability to provide a buffer for our transport links.

He says the previous several years saw serious shipping disruption due to the pandemic, the Ukraine conflict, and natural disasters such as the flooding in New Zealand regions in 2023.

Mr Harrison says global shipping lines are now changing schedules to avoid the Suez Canal and Red Sea region, creating serious delays and cost hikes.

“New Zealand needs to protect our domestic supply chain through boosting coastal shipping capability with New Zealand flagged ships and New Zealand crews.”

Mr Harrison says New Zealand exporters could work together to charter vessels for international and regional trade with Government support. 

Under the previous Government, funding for coastal shipping had resulted in a modest rise in New Zealand flagged vessels, and it was important to keep up the momentum, he says. 

Mr Harrison says New Zealand should be strongly pressing for a ceasefire in the Gaza conflict, which was the underlying political issue behind the Red Sea situation.

The recent Red Sea attacks by the Houthis have been aimed at Israel-linked ships in an effort to stop the Israeli offensive in Gaza.

The Maritime Union is supporting a call from the International Transport Workers’ Federation to ensure the safety of seafarers, which requires the rerouting of vessels away from the danger zone.