Interislander write-offs drive $407m KiwiRail deficit

KiwiRail has had to write off $382m in costs associated with the Interislander replacement project. (Image: KiwiRail)

Thu, 29 Feb 2024

KiwiRail has written off $382 million in costs associated with the cancelled Interislander replacement project and provisioned a further $60m for winding it down.The $442m in costs, detailed in the 2024 half-year results released on Thursday, doesn’t include the cost of exiting the shipbuilding contract with South Korean shipyard Hyundai Mipo Dockyard, which was contracted to build two new ferries for $551m.The coalition government declined a bid by KiwiRail last December for nearly $1.5 billion in extra funding for the project, called iR...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Already a Subscriber ? Sign in here.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Retail

Briscoe's bottom line squeezed despite flat first-half sales

Rod Duke expects full-year profits to come in lower than previously signalled.

Gregor Thompson 10:15am

The Quiz Free

QuiznessDesk, Wednesday, Sept 10

Think you're clever enough?

The Quizmaster 9:15am

Climate change

NZ should welcome Chinese cleantech expertise: Lord Turner

The election of Donald Trump meant a ‘wrenching change’ in US climate policy.

Greg Hurrell 5:00am

NZ should welcome Chinese cleantech expertise: Lord Turner

Sponsored

Free AI training blitz targets 10,000 Kiwis

Workshops aim to close NZ’s AI skills gap and boost productivity – no tech skills required.

Sponsored by Lumify

Sponsored

Are employers doing enough to prepare workers to retire well?

When one third of the New Zealand workforce is aged 55 or older – are employers doing enough to help them prepare for retirement?

Moneyfit

More Infrastructure

Infrastructure

Transpower to spend $1.1b on Cook Strait link upgrade

Transpower plans to spend $1.1 billion on upgrading the electricity link between the North and South Islands.The state-owned power grid operator said it had applied to the Commerce Commission for approval to invest in the High Voltage Direct Current (HVDC) link.The proposal inclu...

Staff reporters 09 Sep 2025