John MacDonald: You thought it was expensive now to travel. Just wait...

If you think it’s expensive to travel around the country now, it’s about to get more expensive with KiwiRail ditching one of its ferries.  

But even though flying isn’t cheap, KiwiRail can forget about me making any interisland ferry bookings. Because why would ya?  

Two dungers —either of which can be out of service on any given day— no thanks.  

This all goes back to the decision by the Government not long after it came to power to pull the plug on the mega ferry project that Labour seemed to have an open cheque book for.  

Originally, the cost of getting the new mega ferries and bringing the portside infrastructure up-to-scratch was going to be around $1.5 billion.  

But that blew out to $3 billion and Finance Minister Nicola Willis said “no” when KiwiRail came knocking asking for more money.   

She said at the time that Cabinet wasn’t confident that there wouldn’t be further cost blow-outs. A bit further down the track, she washed her hands of the whole thing and handed-it over to Winston Peters who became the Minister for Rail with his number one job being to find cheaper ferries and fast.  

And, as we now know, they're expected to be here in 2029. In fact, pretty much all we know. We don't know how much they're going to cost. We also don't know how much it has cost or is going to cost the Government to get out of the original ship building contract.  

But this isn’t about the politics today. The conversation today is about KiwiRail running just two ferries on Cook Strait for the next four years, and what that’s going to mean.  

What it’s going to mean for passengers, and what it’s going to mean for people shifting freight up and down the country.  

Let’s start with passengers: there’s no doubt it’s going to get more expensive to cross the Strait. That’s just how business works.   

The Aratere does two crossings a day and can carry up to 400 passengers. So there’s 800 passengers a day that won’t be crossing. To be fair to KiwiRail, they are saying that they think the most impact on passengers will happen during the peak season.  

But, either way, it’s only going to lead to increased prices and decreased reliability.  

Then there’s the freight issue. There’s already no shortage of people saying how unreliable the Interislander has become for them getting their products to and from the North and South Islands.  

I see that road freight lobby group Transporting New Zealand is saying that the Aratere going out of service will create more risk for freight.  

Chief Executive Dom Kalasih is saying today that it will be "fascinating” to see what happens with freight with no rail-enabled ferries.  

But it’s not the lack of rail that’s going to be an issue, because guess how much freight in New Zealand is carried on trucks? Ninety percent. And a lot of them will be trucking operators that cross Cook Strait on the Interislander, competing for space paying higher prices.  

And businesses paying more will mean everybody paying more. 

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Episode Transcript

Speaker 1 (00:06):
You're listening to the Canterbury Mornings podcast with John McDonald
from News Talk z'b.

Speaker 2 (00:12):
If you think it's expensive, If you think it's expensive
to travel around the country, now it's about to get
more expensive with Kiwi Rail ditching one of its fairies.
It's not just travel, it's going to get more expensive.
But even though flying isn't cheap, I'll tell you what,
Kiwi Rail can forget about me making any inter island

(00:33):
fairy bookings because why would you two dungers, either of
which can be out of service on any given day.
No thanks. So the big announcement came late yesterday afternoon.
I heard the Kiwi Rail boss, Peter Ready. You might
have heard him too, he's trying to do a cell job.
When he was on with Mike this morning, he was

(00:54):
saying how great it is that things will all going
and the building of the new infrastructure picked in for
the new fairies is happening, which, yes, it is great.
This is the infrastructure for the new fair areas that
won't be here for another four years. And with the
Oder Teddy going out of service, Kiwi Rail is going
to be down to two ships, which won't include one

(01:17):
won't include one that can carry rail. So it all
goes back to the decision, isn't it by the government.
Not long after it came to power to pull the
plug on the mega ferry project that Labour seemed to
have had an open checkbook for. Originally, the cost of
getting the new mega fairies and bringing the port side
infrastructure up to scratch was going to be around one

(01:39):
point five billion optimistic to say the least. It blew
out to three billion, and Finance Minister Nikola Willers said
no no when Kiwi Rail came knocking on the door
asking for more money. She said at the time when
she announced the decision that Cabinet was not confident that
there wouldn't be further cost blowouts, which I think is

(02:01):
a fair assumption and a bit further down the track.
She washed her hands of the whole thing and hand
it over to Winston Peters who became the Minister for
Rail with his number one job being to find cheaper
fairies and to find them fast. And as we now know,
they're expected to be here in twenty twenty nine. In fact,
pretty much all we know is that we don't know

(02:22):
how much they're going to cost. We also don't know
how much it has cost or is going to cost
the government to get out of the original ship building contract.
But this isn't about the politics today. The conversation today
is about Kiwi Rail running just two ferries on cookstraight
for the next four years and what that's going to mean,
what it's going to mean to your confidence in the service,

(02:44):
what it's going to mean for passengers, and what it's
going to mean for people shifting freight up and down
the country. Let's start with the passengers. Ah, there is
no doubt that it's going to get more expensive to
cross Cookstrain. That's just how business works. With one less faery,
of course they'll charge more. I mean I heard Kiwi
Rail's growth officer telling Heather last night that at the

(03:07):
moment the oder Teddy does two crossings a day, it
can take up to four hundred passengers, So there's eight
hundred passengers a day that won't be crossing. Although to
be fair to keiw We Rail, you are saying that
they think the most impact on passengers will happen during
the peak season. Either way, either way not great. Either way,
you won't get me booking because this is only going

(03:27):
to mean increased prices and decreased reliability. Then there's the
freight issue. You know, there's already no shortage of people
saying how unreliable the inter Islander has become for them
getting their products to and from the North and South Islands.
I see that the road freight lobby group Transporting New
Zealand is saying that the ODA teddy going out of

(03:50):
service will create more risk for freight. I don't think
you need to be a brains trust to work that
one out. Nevertheless, Chef Executive Dom Calissea he is saying
today that it will be quote fascinating fascinating to see
what happens with freight with no rail in abled ferries
crossing cockstraight. But it's not the lack of rail that's

(04:12):
going to be the major issue because guess how much
freight in New Zealand is carried around on trucks. Ninety
percent of them and a lot of them will be
trucks that cross cockstraight on the intro trucks that will
have to compete for space and operators that will have
to pay higher prices, which is two ferries running and

(04:33):
business is paying more. What does that mean? Means you
and I paying more.

Speaker 1 (04:38):
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