A Singaporean-registered log carrier, Funing-9690913, has grounded in the shipping channel at Port of Tauranga between Mauao (Mount Manganui) and Matakana Island.
The vessel has dropped anchors and is holding itself in position. Two tugs are with the vessel and providing support.
Maritime NZ Deputy Director Safety and Response Systems, Nigel Clifford, said no oil or other pollution has been reported from the vessel nor any injuries to the crew.
Tauranga port authorities have set up a response centre to manage the event. Maritime NZ has established a team to provide coordination and support.
At about 12.30am today the Funing-9690913 lost power leaving Tauranga harbour. It was outbound to China.
The vessel appears to be on the edge of the shipping channel. The seabed at that point of the channel is sandy.
Twenty crew are on board, plus a maritime pilot from Port of Tauranga.
Weather and sea conditions at the time of the engine failure were fairly poor, with a 30 knot wind and significant swell.
The forecast for today is for the wind and swell to ease throughout the day. The tide is now rising, with high tide at 7.40am.