AT says Auckland's ferry fleet carries 6% of Auckland’s commuters but produces 20% of all emissions from public transport as it burns through 13 million litres of diesel a year. The first electric ferry (pictured) will be zero-emission, but Fullers boss Mike Horne says it's also cheaper to leave diesel behind. Photo / Dean Purcell
It’s a topsy-turvy world as Auckland Council doubles down on diesel while private-equity-owned Fullers goes green – and argues that makes the most financial sense. Fullers buys a second electric craft from start-up Vessev, and an update on the giant ferry megacharger for Queens Wharf.
Low-emission public transport boosters were disappointed earlier this year when a plan to electrify Auckland’s fleet of 27 ferries stalled at just two electric boats and two hybrids commissioned, as central and local government funding tightened. Construction of on-per megachargers had also fallen badly behind schedule.
But last week it turned from a stall to a reversal as the Herald’s Simon Wilson reported, “More diesel ferries on the way.”
“You read that right. The board of Auckland Transport, acting on advice from its executive, has decided to buy more diesel ferries for use on the Waitematā Harbour,” Wilson wrote.
AT “future shaper” (as she describes herself on LinkedIn), Stacey van der Putten, told councillors “modern diesel” offers the best option for cost and reliability, at least for now. Especially as the Government will no longer help fund electric ferries.
At the same time, Fullers chief executive Mike Horne has come out as an advocate for electric ferries (and in the longer term, hydrogen-powered boats).
The current set-up involves AT choosing the strategy, then paying for electric, hybrid or diesel ferries that run on publicly-subsidised routes, which are then operated by Fullers.
So Fullers will run whatever types of ferries are commissioned by AT.
But Horne says his firm, which is controlled by a private equity owner (that is, one of the bluntest expressions of the free market), thinks electric is the best financial option.
He makes it clear that when he’s spending his own company’s money, he sees electric as the only way to go.
“Everyone gets a bit confused with the cost of building a boat and the cost of operating a boat over time,” Horne says.
“I look at the whole-of-life.
“And if I’m investing commercially, which I am, I’m going to the electric boats every time.
“Over time, they are materially cheaper than running a diesel boat.
“I’m certainly not looking to build new diesel boats for my commercial fleet for exactly that reason. They make no economic sense.”
“In terms of op-ex [operating expenses], we’ve got three big costs: labour, maintenance and fuel. Taking out fossil fuel and putting in electricity is about 75% cheaper; that’s a game-changer for an operational organisation over time.
“And the other one is R&M [repairs and maintenance]. A diesel engine needs to be replaced every five to seven years over 25 to 30 years. They’ve got 6000 moving parts and lots of vibration, that’s what kills those engines – and they’re really, really expensive.”
The first electric ferries will have one major cost: replacing their 11 tonnes of lithium-ion batteries after eight to 10 years. The cost is estimated at $1 million, though EV Maritime says economies of scale might have taken effect in a decade’s time.
Horne says the electric ferries will be “materially cheaper to run” than diesels but won’t put a dollar value or percentage on it at this point, because the electric models have yet to go into service.
EV Maritime’s model will be Auckland’s first electric ferry, but not the first in New Zealand. Wellington got a smaller electric ferry, the Ika Rere, in March 2022. However, it recently spent 10 months out of action, which was blamed on difficulties sourcing spare parts – a point picked up on by some Auckland councillors as they questioned the new technology’s reliability.
Inside (and outside) Auckland’s first electric ferry pic.twitter.com/EvaxoNDTM8
— Chris Keall (@ChrisKeall) June 11, 2025
Horne said the Wellington boat was the result of “a really bespoke process”, while Fullers has been working with Whanganui’s QWest (builder of the two hybrid ferries) and Christchurch’s HamiltonJet (maker of the propulsion systems for the two hybrids and the two electric ferries) over three years “and at every point we’ve been looking at the viability of specific parts”.
“And I’m not saying that as a boat builder chasing unicorns but as an operator of 40 years who knows exactly what we need to run big boats reliably.”
The on-pier charging system was being built to a global standard.
Horne has put his money where his mouth is. Fullers put the initial investment into the two 300-passenger hybrid ferries, later integrated into AT’s seven (now four) electric ferry build.
The firm has also backed Auckland start-up Vessev and bought its first 10-passenger “VS-9″ hydrofoiling electric boat, built at a cost of around $1m. The VS-9 is being used for harbour tour charters.
This week, Fullers said it has added a second VS-9 to its fleet.
The first was Vessev’s prototype and not perfect. The Herald found it too loud for regular conversation. Horne says the first production model has a “torpedo”-style engine beneath the water, eliminating the noise issue.
Vessev, whose largest shareholders are Icehouse Ventures, Blackbird and Sir Stephen Tindall, says it will make its first international deliveries next year.
Horne sees the VS-9 as a “proof of concept” and stepping stone to a 100-passenger Vessev craft – for now, still on the drawing board. That would be a step up in cost (the first electric ferry, which seats 200, came in on budget at $20m).
Auckland Mayor Wayne Brown has recently been on a push to establish himself as a technology leader, through his successful lobbying to get the Government’s new advanced research agency (in part replacing the Wellington-based Callaghan Innovation) hosted in his city and his creation of The Auckland Innovation & Technology Alliance and the creation of the Auckland Tech Council.
But BusinessDesk tech commentator Peter Griffin recently saw “technophobic dithering” in the AT’s decision to “double down on diesel-powered ferries”.
AT’s shift in sentiment away from electric ferries is out-and-out bad news for East Tāmaki-based EV Maritime, designer of Auckland’s first two electric ferries.
Horne, diplomatically, says he supports the mayor’s innovation alliance.
“The opportunities for electrification, foiling and introducing other low-emission technologies to New Zealand are abundant.
“Kiwi innovation is both scalable and exciting, and we are well-positioned to continue pioneering a way forward using alternative energy sources.
“Switching to alternate fuels such as electric, foiling and hydrogen is a sound choice for the environment, and that’s just where the benefits begin. As a commercial business, it makes firm economic sense and, better yet, it makes sense for New Zealand.
“These alternate fuel advancements are already on the world stage [EV Maritime has a deal with a design deal with a San Francisco ferry operator]; it’s all proven technology, and it’s our job to harness and scale it.
“New Zealand is a net importer of fossil fuels. By transitioning to domestically sourced energy options, such as hydroelectricity, we can reduce our reliance on imports and improve energy security,” said Horne.
The Australian recently reported that Fullers’ British owner, Souter, had “tapped Cameron Partners” as it considered a possible sale of the ferry business.
“Fullers is not in any process at the moment,” Horne said.
The chief executive said he constantly fielded interest in the business, which he always kicked upstairs to Souter.
Fullers took some chunky hits during the pandemic as commuters disappeared during lockdowns. A chronic staff shortage followed.
Its accounts for the year to March 31, 2024, showed the business in recovery with its net loss shrinking from $4.3m in FY2023 to $1.2m as its revenue rose from $70.2m to $80.2m. Contract income from AT rose from $39.4m to $43m. Its FY25 numbers are due shortly.
With the first electric ferry on the water (it’s now undergoing several months of testing), the pressure is on to get megachargers online at Queens Wharf (that is, the downtown ferry terminal), Half Moon Bay and Hobsonville Point under a $27.6m contract signed with electrification firm ABB.
Hobsonville Point is nowhere. Its charger will need pontoon upgrades to the local pier. That work is expected to be completed in 2026 but it might take until a 2028 funding round for the charger installation to be completed.
At Half Moon Bay, things are almost good to go.
“The charger has been successfully pre-commissioned, and we are co-ordinating with vessel manufacturers on the timing of load testing as part of their broader testing and commissioning programmes,” AT programme director Nathan Cammock told the Herald earlier this week.
The problem is that AT has said the first electric ferry will operate with 10-minute top-up charges at both ends as customers get on and off. However, when it arrives in the city from Half Moon Bay, there will be no megachargers.
On June 10, as the first electric ferry was launched, the two-storey building that will house three 3.3 megawatt chargers did not even have resource consent. It’s now over the line, but AT is vague on when construction will begin, let alone when it will be online.
Earlier this week, Cammock said, “The resource consent has been granted for the Downtown electric ferry charging infrastructure and works are now under way beneath the wharf to prepare for cable tray installation and cable pulling.
“With the consent now received, we are working to finalise our construction sequencing, including co-ordination with existing wharf activities, including events, cruise ship movements and public transport operations.
“We do not have an ETA to share at this time; however, our intention is to install and commission the three chargers in stages, taking into account any lessons learned and optimisations from Half Moon Bay as we gain operational experience.”
Horne points out that the two hybrid ferries on the way for the Devonport-city. centre run will have diesel generators as a back-up, so they’ll be able to run no matter how far behind AT is with its megacharger installation.
Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.