The Interislander's Aratere ferry was successfully tested overnight but remains banned from commercial operations until Maritime New Zealand (MNZ) gives the go-ahead.
MNZ yesterday ordered operator KiwiRail to stop operating the ferry until mechanical system failures were resolved and it was safe for passengers and crew.
The order came after the Wellington-bound Aratere suffered reduced power in the Tory Channel in the Marlborough Sounds on Tuesday night - the second time in a month the newly refurbished ship had had mechanical problems.
A KiwiRail spokeswoman this morning said a successful test was held overnight but there was more work to be done.
In the meantime, passengers and freight customers booked on the ferry had been contacted and alternative arrangements made.