The Government has abandoned plans to procure dedicated emergency ocean response capabilities (EORC) for the Cook Strait, citing a sharp rise in projected costs and limited operational benefit.
Transport Minister Chris Bishop confirmed the decision, saying the proposed system—two specialist vessels on retainer to stabilise and tow stricken ships—could not be justified given the small number of incidents where it might make a meaningful difference.
Maritime NZ had been allocated $600,000 in Budget 2024 to develop the business case.
Cabinet reviewed an Indicative Business Case in late 2024 and a Detailed Business Case in March 2025. While the review noted 23 relevant maritime incidents over five years, all had been resolved using existing resources, and most occurred outside the Cook Strait area. The potential benefits, officials concluded, would apply only in a narrow range of severe cases.
Cost estimates were a major factor in the cancellation. The projected price for the two-vessel “two-strike” solution jumped from around $80 million over 10 years to more than $259 million at the detailed stage. Even with proposed EORC-specific levies, Bishop said the financial impact on both the Crown and consumers would be significant. “The cost to taxpayers is too high for something that’s unlikely to be needed – and unlikely to be useful even if it is,” he said.
Bishop also highlighted that two new Cook Strait ferries—expected to enter service in 2029—will include upgraded propulsion, fire safety, navigation, and monitoring systems, reducing reliance on external emergency assistance. As a result of the Government’s decision, the part-time contract for the ocean-going tug MMA Vision will end in February 2026, saving roughly $9 million.
While acknowledging that maritime incidents cannot be entirely prevented, Bishop said the required investment for specialised towing capabilities was not cost-effective. “We cannot justify government procuring these services, nor can we justify passing these costs on to users via new levies,” he said.
