Auckland ferries: Services cancelled after Fullers awarded $350 million contract by Auckland Transport

Auckland Transport has signed a $351m contract for Fullers360 to deliver ferry services. Photo / Alex Burton

A contract worth hundreds of millions of dollars for Auckland ferry services is under scrutiny from city councillors amid reports of vessel breakdowns and cancellations this week.

Auckland Transport (AT) has signed a $351 million contract for problem-plagued Fullers360 to deliver ferry services on the Devonport, Half Moon Bay and Hobsonville routes for 12 years, and the Gulf Habour route for six years.

A key part of the contract is bringing the popular Devonport service, which has been run by Fullers as a commercial operation, under the direct control of Auckland Transport to give it greater control and influence over services, timetables and fares on the route.

It also allows AT not to pay Fullers for cancelled services.

Fullers CEO Mike Horne has secured a $351 million contract for four ferry services. Photo / Jason Oxenham

Two councillors with first-hand knowledge of the city’s ferry services are concerned about AT committing a significant sum of money over a long period to a single operator, and a third councillor has spoken out about the short-term issues of moving to the new contract.

North Shore councillor Richard Hills said the Devonport ferry is an “absolute mess right now” with services cancelled at peak times this week with no warnings to ferry users.

One commuter said the 5.30pm sailing to Devonport on Tuesday broke down midway across the Waitemata Habour and returned to the downtown terminal where he was left waiting for 30 minutes for the 6.30pm sailing.

The commuter, who wished to remain anonymous, said the ferry was heading towards Devonport when it suddenly started heading towards the Harbour Bridge.

“The captain said ‘we are having mechanical problems...and returning to Auckland’,” he said.

It was the third disruption this week, said the frustrated commuter, who wanted to see greater transparency and accountability from the problem-plagued ferry operator.

Hills sympathised with ferry users on social media, saying: “Sigh. More disappointing experiences for many of you on the Devonport Ferry today.’

He said AT officers told him Fullers crew numbers are down by 25 per cent and acting AT chief executive Mark Lambert is investigating the reasons for this week’s cancellations.

Auckland councillor Richard Hills. Photo / Supplied

A Fullers spokeswoman today said Tuesday’s 5.30pm service from downtown Auckland to Devonport had an unexpected mechanical failure.

“Our crew identified the issued and made the decision to turn back to downtown Auckland, following standard operations procedures. Passengers were then able to safely board the 6.30pm sailing to Devonport. We apologise for the inconvenience caused to our customers and appreciate the impact this has on their day, particularly during commuting hours,” the spokeswoman said.

Normally, she said, Fullers are able to run a backup vessel to pick up passengers and take them to Devonport without them needing to wait for the next scheduled service. Unfortunately, while we continue to manage the industry-wide skills shortage our capacity to operate backup vessels when unexpected disruptions like this occur is very limited.

The business has been grappling with skills shortages for more than a year, the spokeswoman said.

“We are working hard to resolve this, including launching a domestic and international recruitment campaign, increasing pay for our employees, investing in training and development and partnering with competitors to sustain our summer timetable.

“We are also actively engaging skilled workers from other markets including the Philippines, South Africa, Australia and the US. However, there is no quick fix,” she said.

Long-term, Hills said, there would be benefits from AT having control of the Devonport service and taking public ownership of the ferry fleet, including five new electric-hybrid ferries.

AT metro contracts manager Gareth Willis said without the contract for Devonport, a private contractor would be able to reduce service levels for commercial reasons.

Waitematā councillor Mike Lee, who has been appointed to the board of Auckland Transport. Photo / File

The new “partnership” between AT and Fullers enables both parties to focus on the future development of the ferry network, including the move to a decarbonised fleet, said Willis.

He said accounting for inflation, the $351m figure compares favourably with what AT was previously paying Fullers for the Half Moon Bay, Hobsonville and Gulf Harbour services, saying a key part of the transaction is bringing the Devonport service under the control of AT.

“This more than doubles the number of passenger journeys undertaken on contracted passenger ferry services,” Willis said.

Fullers360 chief executive Mike Horne is in Sydney on business and could not be contacted to comment on the value, length and conditions of the new contract.

He has previously said the contract has secured the company’s Auckland operations and will help ensure regular, quality services for ferry users.

In a joint statement, Mike Lee, who has been appointed to the AT board, and fellow councillor John Watson, who chairs the transport and infrastructure committee, expressed concern about a large amount of money being committed over a long period.

“The AT deal is very expensive and provides little tangible guarantees for ferry users,” Lee and Watson said.

“AT is using ratepayer funds to lock in place a foreign-owned monopoly for at least 12 years. Normally council spending is restricted to 10-year long-term plans.”

Auckland councillor John Watson. Photo / Nick Reed

Watson separately said the anticipated improvements to ferry services will be welcomed in his ward where the Gulf Harbour, Hobsonville and West Harbour services run.

“Under the new contract AT will hopefully have more levers to both increase and improve services than previously,” Watson said, adding some of the costs would be returned through fares and subsidies from Waka Kotahi NZ Transport Agency.

Lee, the councillor for the Waitemata and Gulf ward and a resident of Waiheke Island, questioned why the Waiheke service was not brought under the control of AT, which resident islanders have long wanted.

The Waiheke service was excluded from the new contract due to extra funding required from AT or central government.