Peter Reidy: KiwiRail CEO on the company reducing its Interislander fleet to two

KiwiRail admits it may be helping out its competition by reducing its Interislander fleet to two.  

Aratere will be retired when demolition begins on its decaying dock in Picton late this year or early next, to add infrastructure for new ships. 

Two new ferries are due in 2029. 

KiwiRail Chief Executive Peter Reidy told Mike Hosking some passengers may opt now to travel with Bluebridge.  

He says capacity is spread between the companies when one faces an issue.  

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Episode Transcript

Speaker 1 (00:00):
Very news. We're losing one of the three into Islanders
as Kiwi Rail retires. The Ratari infrastructure is the issue
key we Rail boss Peter Ridi is with us on this. Peter,
very good morning to you. Good morning, Mike had I
had a sort of a headline grab what pull up,
get excited yesterday. I assume this wasn't breaking news yesterday
or was it? No.

Speaker 2 (00:17):
Look, we thought we would come to the market early just
update customers and the whole market and planning for the
new new ships and the new assets. It's an opportunity
for us to engage with people now and just get
it out there. We knew it was going to happen.
We now we know the timing of the Port Wharf development.
It's now time to get on with it and start
the planning. But you know, it's a big decision. We're

(00:38):
going to engage with the people and stakeholder, so a
tough decision. It's been a big workhouse for the fleet.

Speaker 1 (00:44):
Exactly how not ideal is this?

Speaker 2 (00:48):
Well, we always knew it had to happen. You know,
we're talking about a thirty year plan to new assets
for cook straight safety and reliability, and of course I
would always like to keep the existing fleet in and
just turn the keys over one day and bring and
bring the new ships in, but that can't happen. So
the out teddy needs particular rail infrastructure of Port Marlboro.

(01:09):
Port Marlboro, you know they need to bring that wharf down.
They've been upgrading it, but it needs to be changed.
So you know, look, yes, there will be some capacity
constraints at some stages. We've done a lot of work
in terms of how we'll work it through with our timetables,
in terms of our planning for man Genello locations. We're

(01:29):
going to start talking to customers now. During peak season,
you know there's not a lot of freight and Christmas
that's great for passengers. There'll be some periods where there
will be some constraints, but we're working through all that
of the month.

Speaker 1 (01:41):
Here's a text Mike. As it gets harder to get
on a fairy, watch them put the price up.

Speaker 2 (01:45):
You say, what, well, well, what I could say. The
reliability fairies over the summer season the last four months
has been one hundred percent. Right now, our focus is
on making sure we can move the capacity and the passengers.
So you know, the competitor's got two fairies. We'll have two.
We will be making sure they're reliable and and running between.

(02:08):
But yes, there will be some times where you might
be able to not get on the early morning one,
but get on the ferry you know, three four us later.

Speaker 1 (02:15):
Okay, is this a gift for Bluebridge? Basically you're just
handing them business? No, well no, well no yet I
think yes.

Speaker 2 (02:22):
We always think that when't take capacity out, you're going
to have capacity gets spread across the two. So yes,
and actually you know, when when either they have an issue,
we have an issue, we actually help each other out.
So yes, you're going to take a ship out, there's
going to be capacity spread across both. You know what
we have seen and we've had great customer experience and
service and reliability the last four months, so you know,

(02:44):
we'd be hoping that people will stick with us, but
I can understand at times they'll make other decisions.

Speaker 1 (02:49):
Here's another text. They're flooding in for your Peter. How
much will you get for selling the oratarry? What's it
worth a scrap which I'm assuming is all that's left now.

Speaker 2 (02:56):
Yeah, look, we haven't that there are options, Mike, We
haven't really gone through that. If it is scrapped, it's minimal.
But I mean we'll go through that as we go
through the planning of the exect retirement. But you know
it's twenty eight years old, so.

Speaker 1 (03:12):
Is it not bad options? Do you? I don't think
I've talked to you about through this whole process, this whole
fairy thing. You know that you'll be well acquainted with.
How is a country? Do you reckon? We've handled it?

Speaker 2 (03:25):
Oh? Look if you think about you know the two islands,
the way we've moved significant freight and passengers across the
country significantly reliably, and the Cook Strait is not an
easy water passage. I think incredible. The fact that we've
got ships now, you know, the last four months, as
I've said, one hundred percent reliably. You know, it's had

(03:46):
a history like a lot of industries. But I think
our team, I'm really proud of what our team do.
We've had, you know, issues, but we've got on with it.
I think for New Zealand it's a critical trading route
and I think ourselves and competitor we're all out that
you're doing as best we can.

Speaker 1 (04:03):
Good stuff. PET appreciate time very much, Peter Radio. I
love the way people call the other people. I mean
it's called Bluebridge. I mean I call like Radio New
Zealand's Radio New Zealand and go the Yebi compared on
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