KiwiRail board exodus: Rob Jager appointed acting chairman, search for new directors continues

KiwiRail has been under intense scrutiny in recent months after its plan to replace its ageing ferry fleet with two mega ferries was left dead in the water. Photo / Bevan Conley

Government ministers have appointed an acting chairman at KiwiRail after Finance Minister Nicola Willis warned a “board refresh” was coming and an exodus of directors ensued.

Rob Jager, an existing director on the board, has accepted the position. His career includes more than 43 years with Shell in various executive roles, including chairman and vice-president of the Shell companies in New Zealand.

“I look forward to working with KiwiRail’s shareholding ministers, board, management, staff and stakeholders and supporting the company in implementing its plan to increase efficiency and deliver exemplary safe and reliable customer service,” Jager said in a statement.

It comes after Willis announced the early retirement of outgoing chairman David McLean.

McLean’s exit was followed by the departure of KiwiRail directors Rachel Pinn, a transport consultant, Ed Sims, former chief executive of Canadian airline WestJet, and Maryan Street, a former Labour MP and minister.

“On behalf of the board, I thank David McLean for his service to the company, along with directors Rachel Pinn, Ed Sims, and Hon Maryan Street, who recently announced their resignations”, Jager said.

Minister for State Owned Enterprises Paul Goldsmith said Jager has taken up the role of acting chairman while a search for a permanent replacement continued.

Goldsmith has previously said this was being progressed urgently.

“We are evaluating potential skill gaps on the board with a view to bringing in new members. This work is ongoing.”

Last week, McLean declined a sit-down interview with the Herald about leaving KiwiRail.

KiwiRail has been under intense scrutiny in recent months after its plan to replace its ageing ferry fleet with two mega ferries was left dead in the water. The Government refused to fund a cost blowout of $1.47 billion for the portside infrastructure needed to support the larger ships.

Outgoing KiwiRail chairman David McLean has previously declined a sit-down interview with the Herald about leaving KiwiRail. Photo / Mark Mitchell

The Aratere grounding was the latest in a string of high-profile breakdowns involving Interislander.

Ministers have raised “serious questions” about KiwiRail’s financial outlook and its safety record.

Meanwhile, Ministry of Transport officials have been considering whether the Interislander business should be removed from KiwiRail.

A ministerial advisory group has reported back to the Government behind closed doors on procurement options to replace Interislander’s existing three ferries.

The Government has yet to announce its new plan.

There is speculation ministers could be considering setting up a Schedule 4A company to procure the new vessels and potentially operate them when they arrive.

Under a Schedule 4A framework, the Government can sell some of its shares but it must retain a majority shareholding in the company. This would create flexibility to seek private investment.

Georgina Campbell is a Wellington-based reporter who has a particular interest in local government, transport, and seismic issues. She joined the Herald in 2019 after working as a broadcast journalist.