Tranz Rail rival buys new vessel

WELLINGTON - Strait Shipping is challenging Tranz Rail's dominance of Cook Strait freight by buying a vessel that will boost its capacity fourfold.

The freight-only MV Kent will go into service on Tuesday next week, carrying up to 50 truck-and-trailer units between Wellington and Picton.

Strait Shipping's present Cook Strait vessel, the Suilven, carries only 12.

Since the demise of the Top Cat passenger and freight ferry last year the Suilven has been the only rival to Tranz Rail's Cook Strait ferries,though Pacifica Shipping also carries freight to Lyttelton.

From June, after routine maintenance on the Suilven, Strait Shipping's two vessels will offer 26 return Cook Strait sailings a week, commercial manager Sheryl Mateni said yesterday.

There were no plans to have the Kent take passengers as it did not have the facilities.

Strait Shipping, which began plying Cook Strait in 1992, is the only Tranz Rail rival to survive long term. As well as Top Cat, Sea Cat, Sea Shuttle and Strait Runner also closed after short periods in business.

Privately owned Strait Shipping's major shareholder is Jim Barker of Otorohanga.

After the collapse of Top Cat, the Road Transport Forum complained to the Commerce Commission about Tranz Rail's Cook Strait prices.

The commission is now investigating Tranz Rail's behaviour.

Ms Mateni downplayed the prospect of the Kent's arrival sparking a price war with Tranz Rail.

"We don't want to see a price war on the Cook Strait.

"We have our costs worked out and our price reflects that."

Prices on the Kent would be the same as on the Suilven, she said.

Tranz Rail's general manager of Interisland Services, Thomas Davis, acknowledged the threat from Strait Shipping's extra capacity.

"We'll certainly be talking to customers to ensure we are looking after their interests."

He declined to comment on whether prices might drop.

Mr Davis said Tranz Rail had always rejected claims it dominated Cook Strait freight shipping.

But he said the Kent's arrival might help to change people's perceptions that it did.

The Kent - 122m long, or slightly shorter than Tranz Rail's Aratere - will berth at Kings Wharf on Saturday morning.

- NZPA