David Farrar: Could be a lot worse

The Herald reports:

KiwiRail has settled with Hyundai Mipo Dockyard with a $144 million final payment following the cancellation of the Project iRex ferries.

In a press statement, Rail Minister Winston Peters was highly critical of previous media reporting that predicted a much larger figure for cancelling the contract for two large ships.

Dr Oliver Hartwich: NZ’s ferry farce is proof politicians are out of depth in business

Here is a simple business scenario: You operate ferries across Cook Strait, between New Zealand’s North and South Islands. Your vessels are ageing and need replacement. What do you do?

For a private operator like Bluebridge, owned by Morgan Stanley Infrastructure Partners, the answer is straightforward: make decisions based on business fundamentals. The company runs a profitable service, commanding 56 percent of the vehicle freight market. It secured that market share through sound commercial judgment.

David Farrar: The Interislander incompetence

Georgina Campbell reports:

The Government's position on the mega ferries was reinforced this week after Marlborough Harbourmaster Jake Oliver set limits for the maximum size of new vessels using Tory Channel to access ports at Picton and Shakespeare Bay.