Kawatiri Dredge Sale Reduces Costs and Risk for Ratepayers
Buller District Council has completed the sale of the Kawatiri dredge, removing substantial ongoing costs and reducing the financial risks associated with retaining the ageing vessel.
The sale follows an extensive review of the dredge’s future, including options to continue operating it, charter it out, retain it for future work, or dispose of it. Council determined that selling the dredge was the most practical and financially responsible option.
This is not the first time Council has sought to sell the Kawatiri. In 2017, following the loss of the Holcim cement trade, Council resolved to sell the dredge after determining there was insufficient work to economically justify retaining it. No buyer was found at that time and the dredge remained in Council ownership.
The combined financial recovery from the vessel sale, insurance settlement, remaining diesel and spares totalled approximately $347,279, comprising the $50,000 sale price, a $212,445.93 insurance settlement, approximately $80,833 of diesel and $4,000 of spares.
Council retains approximately $3.37 million of existing dredge-related debt. The sale does not remove that debt, but it prevents Council continuing to incur substantial costs maintaining, preserving and potentially repairing a vessel for which there was no level of demand that could economically justify its retention.
Mayor Chris Russell said the economic challenge surrounding the Kawatiri had existed for many years.
“Council decided to sell the Kawatiri in 2017, but no buyer was found and the dredge remained in Council ownership.
“Nine years later, there was still no level of demand that could economically justify the continuing costs and risks. A buyer was found, the dredge has been sold, and we have now drawn a line under that exposure.
“The existing debt remains, but what we have stopped is ratepayers continuing to carry the substantial ongoing costs and risks of retaining the dredge.”
Council’s review identified annual maintenance and compliance costs of between $100,000 and $200,000, engine and system preservation costs of approximately $25,000 a year, and lay-up costs of approximately $299,812 a year. Potential repairs required to return the dredge to operational service were estimated at between $165,550 and $400,000.
Council had also been advised that insurance was unlikely to be renewed after 1 November 2026 if the Kawatiri remained laid up and not operating. The vessel would also continue to deteriorate, increasing future costs and reducing its potential value.
Importantly, Council has retained ownership of the Bell Pump, allowing future dredging and harbour maintenance to be undertaken using contracted vessels when required. Staff have identified alternative vessels capable of undertaking this work at a lower cost than retaining the Kawatiri.
Mayor Russell said retaining that capability was an important part of the decision.
“Westport’s future dredging requirements can still be met. We have retained the Bell Pump and can contract suitable vessels when the work is needed.
“It is a more practical approach. We retain the capability we need without ratepayers carrying the continuing cost and risk of owning the Kawatiri.”
Council acknowledges the important role the Kawatiri has played in Westport Harbour over many years and the contribution of those who operated and maintained the vessel throughout its service life.
-ENDS-
For further information please contact:
Community Engagement Team
Buller District Council