Docking infrastructure upgrades ‘single biggest risk’ to new Spirit of Tasmania ferries: TT-Line

TT-Line sounded the alarm that berthing facilities at Devonport remained the “single biggest risk” in the whole project well before the state election was called, a committee heard.

Bernard Dwyer CEO TT-Line CEO. TT-Line Spirits Project Inquiry at parliament house. Picture: Nikki Davis-Jones

Government-owned ports operator TasPorts refused to build berthing infrastructure for the new TT-Line ferries because it didn’t want to spend the money, a Parliamentary Committee has heard.

The state’s largest-ever infrastructure project has been plagued by delays and cost overruns amid infighting between TT-Line and TasPorts.

The new ferries will be forced to operate at reduced capacity until the local port facilities are ready some time in 2026.

TT-Line’s outgoing CEO Bernard Dwyer told the Public Account Committee on Tuesday that the ferry operator never wanted to to build the berthing facilities.

The new TT Line boat Spirit of Tasmania IV in Finland. Picture: Rauma Marine Constructions

“We really did not have a choice, we were pushed into a corner by TasPorts who did not want to do it, did not want to pay for it,” he said.

“We would have preferred, as we’ve done with Geelong port site, for TasPorts or the port owner do the infrastructure, agree to a 30-year lease, which is the normal process of ports around the world and which is the same with our current berth at berth one.”

“As recently as April this year in the State Growth committee I had that conversation with State Growth and TasPorts and said, ‘Why don’t you take it over? Why don’t you pay for it and do it?

“At that point, the CEO said ‘Yes, actually, we’ll look at that’, then within 24 hours came back and said: ‘No, the board do not want to pay for it’

“I think the words were ‘we don’t have the appetite for taking any costs of this project on’.”

Earlier, former TT-Line chairman Michael Grainger said efforts to upgrade berth three in Devonport had been thwarted because the company was blocked from access by TasPorts.

Mike Grainger former chair. TT-Line Spirits Project inquiry at parliament house Hobart. Picture: Nikki Davis-Jones

“We made it clear to our shareholder Minister back in 2022 that we remain sceptical of the ability to complete our requirements due to the lack of support from TasPorts,” he said.

“During each ministerial briefing, which always followed each board meeting, the minister was advised that the situation with Devonport berth and TasPorts.

“At one stage I said – and the CEO and the CFO were in this meeting – I said to Minister Ferguson, I think it was November or December last year, certainly before caretaker mode, I said ‘Minister, our single biggest risk in this whole project is TasPorts and berth three and at this stage we’ll be bringing both ships into Hobart and anchoring them in the Derwent’.

“Minister Ferguson replied that I needed to learn to play in the sandpit with TasPorts.”

Mr Grainger said TT-Line was a ferry operator, not a port builder and contrasted the smooth construction of port facilities in Geelong with the fiasco at Devonport.

“Whether it’s TT-Line, whether it’s the Port of Burnie, whether it’s the Antarctic Division, TasPorts has some form — and we learned the hard way,” he said.

Originally published as Docking infrastructure upgrades ‘single biggest risk’ to new Spirit of Tasmania ferries: TT-Line