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.