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Tasmanian has ditched a $850 million European shipbuilding project that SA could grab a slice of

Tasmania has decided its new giant ferries should be built in Australia, not another country. SA is already looking into what we can do here.

Osborne shipyard Arafura-class build

South Australia has thrown its hat in the ring for a slice of an $850m shipbuilding contract for two giant cross-Bass Strait passenger ferries.

The two 221m long vessels - capable of holding 1800 people and 600 vehicles - will replace the existing Spirit of Tasmania ferries.

Finnish firm Rauma Marine Constructions was in line for the full contract, but now the Tasmanian government wants the build in Australia.

The project is expected to generate 1500 jobs.

Tasmanian Premier Peter Gutwein said his government was going back to the drawing board after “conversations” with Scott Morrison in recent weeks.

 “On one hand, we have a decision whereby we see more than $850m invested in a European country supporting European jobs .... on the other hand, we have the opportunity to explore how much of that investment could occur within the state, or within our country,” Mr Gutwein said.

In his press conference in Hobart on Tuesday, Mr Gutwein specifically mentioned SA as a state that could help with the project. Mr Gutwein hinted at a hybrid model that could see the hulls built overseas and the refit be undertaken in Australia.

Premier Steven Marshall said his government is looking forward to seeing the full proposal on the scope and scale of the project.

“We have the critical infrastructure here in South Australia to deliver major projects in this space. We’d be happy to sit down with the key parties to determine what role we could play,” Mr Marshall said.

The Spirit of Tasmania ferry which carries passengers between Melbourne and Devonport in Tasmania. South Australia is investigating ways to get part of the contract to build a new ferry. Picture: William West / AFP
The Spirit of Tasmania ferry which carries passengers between Melbourne and Devonport in Tasmania. South Australia is investigating ways to get part of the contract to build a new ferry. Picture: William West / AFP

A spokesman for the Prime Minister said: “Creating jobs is the government’s number one priority for the COVID recovery, so we welcome the Tasmanian government’s c ommitment to explore Australian-led build options for the replacement Spirit of Tasmania vessels.”

“While decisions around the replacement vessels are ultimately a matter for the Tasmanian government, the commonwealth is willing to provide any relevant expertise to assist Tasmania with this task.”

South Australian Senator Rex Patrick, a former submariner, said Australia should have the capability to build any ship that the Royal Australian Navy and government needs.

“While the shipyard at Osborne is currently not able to build a new Bass Strait ferry on account of the ship’s size, this project could serve as a catalyst for a shipyard upgrade that would have long term utility for the navy,” he said.

“I would support the Premier in investigating such a proposition and I would be happy to advocate for federal assistance in relation to this.”

Adelaide’s credentials a leading shipbuilder were again highlighted yesterday as it was announced BAE-owned ASC Shipbuilding will invest $4m in research on digital visualisation to be conducted by UniSA and the Innovative Manufacturing Cooperative Research Centre.

The digital manufacturing strategy aims to improve shipyard planning, add unique data analytics and solve problems for the Hunter program.

ASC Shipbuilding executive Sharon Wilson said local expertise was important.

“Digital shipbuilding is all about connectivity – not just within the physical and digital shipyard but with our supply chain and customer.”

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Original URL: https://www.adelaidenow.com.au/news/south-australia/tasmanian-has-ditched-a-850-million-european-shipbuilding-project-that-sa-could-grab-a-slice-of/news-story/479f771e7bf215f524700e518520ef98