KiwiRail was being sentenced on Monday afternoon in the Wellington District Court after pleading guilty to exposing passengers to risk when its Interislander ferry broke down off Wellington's rocky south coast.
In January 2023 the Kaitaki was sailing into Wellington Harbour with more than 880 people on board when it lost propulsion - resulting in a mayday call.
Anchors were lowered and life-vests handed out to the passengers, but the crew were able to restore limited power, allowing the ship to limp into the harbour, accompanied by tug boats.
In January this year Maritime NZ filed a charge of exposing people to risk of harm following a near year-long investigation into the incident.
The company has now been sentenced to pay $432,500, including costs associated with the case.
Victim impact statements today shared stories of passengers likening the incident to the Wahine disaster, with many vowing to not user Interislander again.
The maximum penalty the organisation faced is a fine of up to $1.5 million.
