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Monday, 2 June 2025

Ferry, ferry dumb: Tasmania botches major project


If you order two new high-tech ferries to boost tourism to your island then the first thing you need to do is ensure that you have somewhere suitable for them to dock.

Unfortunately for the tourism industry in Tasmania that did not happen when ferry operator TT-Line ordered two new ferries to run from Devonport, on the north coast of the island, to Geelong, outside Melbourne.

The new Spirit of Tasmania ferries, Spirit IV and V, have been built in Finland by shipbuilder Rauma Marine Construction and have been undergoing testing and preparations to travel to Tasmania after several delays. 

IV has spent several months docked at Leith in Scotland with nowhere to go, and now V is also homeless. 

TasPorts, which operates docking facilities around Tasmania, did not begin construction on the new berth in Devonport until last year and it is not expected to be completed until late 2026 at the earliest.

That left the two ships with no role - and nowhere to berth. The government was left with huge bills to dock the ships in Scotland, It investigated leasing them out but could not find anyone willing to do so.      
Both ships, which will add 40% to freight capacity between Tasmania and mainland Australia, were originally due to be delivered to Tasmania in late 2024.

Former minister for infrastructure and transport Michael Ferguson resigned ahead of a no-confidence motion over his handling of the saga - but he remains a member of the government. 

The former TT-Line chairman Michael Grainger and chief executive Bernard Dwyer also left the company. 

Earlier this month, the government revealed one of the projects central to the cost blowouts and delays - the construction of the new berth - had blown out by over $100 million on the most recent estimate. 

Initially quoted at $90 million prior to 2024, the berth construction cost was estimated at $375 million last year, and that figure has now been revised to $495 million.

Last week, the flailing Tasmanian Government revealed that both new ships have issues with their LNG (liquefied natural gas) systems.

The state’s Minister for Transport Eric Abetz said TT-Line has advised the problems will “take some time” to fix, and will again delay the duo of vessels’ arrival in Australia from Finland.

"RMC has advised TT-Line that the issue needs further assessment and rectification, and as a result Spirit IV will not depart for Australia until the work is completed," Abetz said.

"The government is awaiting further details in relation to a new expected departure date, but it is understood that this work will take some time."

Abetz said that any necessary repair costs will be covered under warranty with RMC, and that TT-Line had representatives on the ground in Finland and was engaging with the company.

Abetz had previously said in June last year: “All going well, we expect that the first of the new ships will be ready for delivery in Q3 of 2024, commencing its journey to Tasmania not long after.”

That proved wildly optimistic.
 
Repairs are also being made after a gas bottle was sucked from the seabed into the thrusters of one of the new ferries during testing

The LNG blow has added to delays previously caused by port construction blowouts and bad weather, delivering a sizeable hit to the Tasmanian tourism economy and anger among those exporting goods from the island state.

 It has also sparked comments that Tasmania should change its slogan to "State of Inertia" and has been described by an opposition MP as "the biggest infrastructure stuff up in Tasmania's history".    

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