KiwiRail has agreed to sell its retired Interislander ferry Aratere to a buyer who will deliver the vessel to a specialist recycling shipyard in India.

The ferry, which made its final Cook Strait crossing in August, served as part of the Interislander fleet for 26 years.

It was retired to allow for Picton port redevelopment in preparation for two brand-new Cook Strait ferries due to arrive in 2029.

Interislander executive general manager Duncan Roy said Aratere was not suitable for most ferry operators due to its age and the fact it would require “significant” modification or specialist port infrastructure.

“Therefore, we have pursued a safe, efficient and environmentally responsible recycling option.”

KiwiRail had conducted due diligence and physical inspections of the shipyard and liased closely with New Zealand’s Environmental Protection Authority (EPA) throughout the process, he said.

“Once the buyer takes ownership of the ship it will be responsible for crewing its journey to the recycling yard subject to review by the EPA, which is pending.”

Vessel set sail from a sunny, blue-skied Picton this morning on its final passenger service across Cook Strait. (Source: 1News)

Appliances, furniture and other items had been repurposed across the Interislander fleet to maximise resource use, with any remaining quality items donated, Roy added.

“The responsible recycling of Aratere is part of our transition to the next chapter of modern, efficient, larger rail-enabled ferries.”

The Aratere first arrived on New Zealand’s shores in the late 90s but encountered a number of problems throughout its years of service.

Most notably, the ferry ran aground outside Picton in June 2024.

An investigation found the steering autopilot had been engaged and staff were unable to switch it off.

The morning’s headlines in 90 seconds, including heavy rain on the way for some, a timeline for the Gaza hostages to be released, and why Princess Catherine says put down your phone. (Source: Breakfast)

Share.