1978-79 Upgrade
Despite public protests led by Mayor of Wellington Michael Fowler, the line closed on 22 September 1978 for re-gauging and installation of new steel cars and equipment by Habegger AG of Switzerland, becoming a full funicular. The contract was managed by Wellington engineering firm Cory-Wright and Salmon. The line re-opened on 22 October 1979.
Initially, the refurbished Cable Car suffered a number of problems. The service was frequently interrupted for technical reasons and for extensive safety checks. Largely as a result of these problems, patronage dropped to a low of 500,000 in 1982. After a serious accident in 1988, which put the cars out of service for months, the system underwent a major revamp. This solved most of the problems and patronage has steadily increased since then. A safety survey is conducted annually at the end of October, and takes four days.
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