Dom Kalasih: Transporting New Zealand CEO on the impact of KiwiRail reducing its Interislander fleet

Reducing the Interislander fleet by one could have wide-ranging implications, including on people's pockets.   

Aratere will retire late this year or early next when demolition begins on its aged dock to add infrastructure for new ships. 

Two new ferries aren't due until 2029. 

Transporting New Zealand Chief Executive Dom Kalasih told Kerre Woodham it could affect ferry fares – with the addition of supply chain costs.  

He's asking road freight supply customers to work with them as they navigate the changes.  

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Episode Transcript

Speaker 1 (00:06):
You're listening to the Kerry Wood of Morning's podcast from
News Talks.

Speaker 2 (00:10):
He'd be as we've been discussing, Interreland is reducing its
cook straight ferry fleet from three to two ARDITEDI will
retire when demolition begins on its decaying doc late this
year or early the next to add infrastructure for new ships.
Two new Fairies are due in twenty twenty nine. I

(00:32):
keep my options openness to whether they will actually arrive
in twenty twenty nine, but nonetheless that's when we've been
told they'll be here. The rail Minister, Winston Peters says
keeping inter Island's arditedian service would have waste taxpayer dollars.
You'd have to put in temporary infrastructure of around one
hundred and twenty million, and he says that is not
worth it. Don Calassie from Transporting New Zealand joins me.

(00:57):
Now good morning to you Dom.

Speaker 3 (00:59):
Good morning Carrie.

Speaker 2 (01:00):
What does this mean for you? Does the freight that
would have been transported by rail on the arter Tedy
now be carried carried by your members on the road.

Speaker 3 (01:10):
Ah, it's an interesting question and there's a little bit
of wading, see right, because clearly you know, at one
stage they were going to look at rail capable boats
as opposed to rail unable. So it is possible to
move a freight off a rail wagon onto a ferry
and it's done overseas, right, So exactly how much of

(01:34):
that happens remains to be seen, but certainly the dragging industry,
you know, if there's more demand, then we'll be doing
our very best to gear up to do that.

Speaker 2 (01:47):
If there's more demand and fewer ferry sailing, does that
mean the prices go up?

Speaker 3 (01:54):
Look, I don't want to cry wolf, and yeah, I
don't want to predict the future too much, but that
is a real risk and I think our message to
customers of rope freight supplies would be we're just another
impacted party in this mess and please just try and

(02:18):
work with us to manage our way through it.

Speaker 2 (02:21):
What does that mean though, What does that mean for
the end user being the consumer?

Speaker 3 (02:27):
Well, the prices go up, you know, the reality is
that consumers need to pay right.

Speaker 2 (02:35):
Okay, and that seems almost inevitable as you say, there's
you know, greater demand, fewer ferry sailings, and that's even
even taking into account the existing Bluebridge operation. The two
Furies that the coastal shipping. You know, there is going
to be disruption to the service, no matter how rosy

(02:58):
a picture the rail Minister will Peter Ready paint.

Speaker 3 (03:02):
I think that's the reality, and it was interesting. I
think there's been somescussion with Andrew Holander this morning where
they're signaling there will need to be a change to
customer expectations.

Speaker 2 (03:14):
So, yeah, is this your ideal? You know, the Fury saga.
I did a truncated timeline for listeners earlier. We've gone
from the huge blowout of the two point whatever billion
for the infrastructure in the Korean fairies to Winston Peters

(03:34):
somehow magicing two Furies out of his hat that he
will deliver in twenty twenty nine and a new Portent
picton in making do with the one in Wellington. Is
that your preferred option, given you are probably the most
constant users of the faery.

Speaker 3 (03:50):
Look, it's not idea. I mean, you know, you stand back.
You compare this to a truck fleet. I mean for
someone to replace the truck and then so well there's
going to be a four year gap before that new
truck comes in to the fleet. Would just be a nonsense. Right, Yeah,
but again our sort of viewers, Hey, we just one

(04:11):
big impacted party. We've shown before like three times of
COVID that will do everything we can to try and
make things work with whatever's in front of us.

Speaker 2 (04:25):
Yes, I mean it's I suppose when you know when
you've got if you compare the truck fleet to the
very fleet. If you said I need a replacement truck,
and you said, I reckon, it'll cost me around seven
hundred and seventy five million for my new truck, and
then you went back and said, no, do you know
what is going to cost me two point three five billion,

(04:47):
you could probably expect some pushback and be told to
wait for your bloody truck. You're not going to get
it straight away.

Speaker 3 (04:54):
Look at the time when mister Willis said, you know
they're putting a stop to that, we actually agreed with
the principle that there were so many projects run at
that time across all different sectors where there was just
cost blowout, there wasn't good delivery on time, and so

(05:15):
we agreed with the call to stop that. Right, Yeah,
we are. We are pretty fascinated by the fact that
look over the last several years only one in five
vessels has actually been ral enabled. We're now looking to
go through a period of four years where there will
be no rail enabled boats. And we know there are

(05:40):
infrastructure issues being demonstrated right now with having a row
enabled boat. So it is an interesting decision by Minister
Peters that we're still going to go forward with rail
enabled boats.

Speaker 2 (05:55):
Yeah, honestly, it's just such a saga, isn't it.

Speaker 3 (05:59):
It's just exactly that's what we find interesting.

Speaker 2 (06:03):
Yeah, And no matter no matter how rosier picture is
being painted by Kiwi Rail and by the Minister for Rail,
the end result is that passengers will be disrupted. Users
of the service like you and your your truckies will
be disrupted and things are going to cost more.

Speaker 3 (06:25):
Certainly, that's that's how it stopping to us, you know,
I mean one sort of you. That good thing is
with Krell signaling this, we can really start to try
and plan and better understand what the impacts are. And
then if I say advice our customers where our meanders
customers as to what those empects are and we have

(06:51):
to see what folds out.

Speaker 2 (06:52):
Well, if you understand it, I'd be delighted if you'd
share that understanding with a wider audience. Thank you so
much to Dom, can I say From Transporting New Zealand.

Speaker 1 (07:01):
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