TasPorts wharf funding standoff risking Hobart’s Antarctic gateway status, warns parliamentary report

An ongoing funding dispute at the Macquarie Wharf 6 redevelopment was endangering Hobart’s status as an Antarctic gateway city, a parliamentary inquiry into TasPorts has found.

The RSV Nuyina on the River Derwent. Picture: Chris Kidd

A funding standoff over the redevelopment of Hobart’s Macquarie Wharf 6 was endangering Hobart’s status as an Antarctic gateway city, a parliamentary inquiry into TasPorts operations has found.

In a report tabled on Wednesday, the Legislative Council committee also took aim at TasPorts’ “adversarial approach” to customer relations, and suggested more frequent parliamentary scrutiny of the state-owned company was necessary to ensure greater accountability from senior management.

Committing to consider the committee’s findings, TasPorts chief executive Anthony Donald said the report had acknowledged the company’s work to upgrade port infrastructure across the state, manage risk, and build capacity for future operations.

TasPorts chief executive Anthony Donald outside the TasPorts head office in Launceston. Picture: Stephanie Dalton

“We are also currently engaged in a meaningful customer engagement process which is focused on hearing feedback from customers to inform a proactive and positive engagement approach,” Mr Donald said.

Announcing the committee’s nine recommendations, chair Ruth Forrest MLC said the targeted inquiry had been launched following last year’s annual government businesses scrutiny process, which identified potential deficiencies in TasPorts’ performance and transparency.

The committee found that Hobart Port’s Macquarie Wharf 6 was at the end of its useful life, requiring a rebuild to cater to the long-term needs of the Australian Antarctic Program’s vessel, the RSV Nuyina.

Ruth Forrest MLC. Picture: Linda Higginson

The report revealed that TasPorts had incurred costs of up to $5.5m to ensure safe berthing at the wharf, while a funding stand-off with the AAD over a future facility continued.

“The delays in finalising the scope of works required by the Australian Antarctic Program regarding the infrastructure required at Macquarie Wharf 6 and commercial agreements creates risk to Hobart’s status as an Antarctic gateway,” Ms Forrest said.

The committee called on the Tasmanian government to step in to break the impasse, recommending it “take a proactive approach to ensure Hobart remains the Antarctic Gateway to Australia”.

The report also suggested the government probe TasPorts’ relations with external parties, finding that the company exhibited “an adversarial approach” to dealing with some customers and stakeholders.

“This approach does not reflect contemporary governance, business management practices or business operations,” the report read.

“Considering customer feedback received, the committee recommends the government review TasPorts’ customer research report and engagement processes to determine whether TasPorts takes a customer focused business approach and provide any guidance deemed necessary in response.”

The committee found that with an ageing portfolio of infrastructure across the state, TasPorts needed to make greater use of available technology to help mitigate risk.

Ms Forrest said recurring issues with structural integrity at various Tasmanian ports suggested the company may not be leveraging tools such drones and underwater vehicles to their full potential, or was not properly prioritising necessary maintenance and repairs.

“Considering recent marine infrastructure related faults and failures, the committee recommends the shareholder ministers review the frequency and adequacy of the Wharf Structure Condition,” the member for Murchison said.

The committee also found that further simulations were being undertaken at Devonport to understand the risks associated with the new TT-Line vessel’s temporary home at Berth 1.

Premier and Minister for Infrastructure, Jeremy Rockliff, said the government would review the report’s findings and the recommendations, and respond to it “in due course”.

Premier Rockliff said the government was rewriting the TasPorts charter to ensure the state-owned company was focused on delivering for Tasmanians.

Originally published as TasPorts wharf funding standoff risking Hobart’s Antarctic gateway status, warns parliamentary report