TT-Line berth cost blowout as new ferry starts sea trials

The state government had delivered another financial blowout at the new Spirit of Tasmania ferries begin sea trials. See the video

The cost of upgrades to wharf facilities for the new TT-Line ferries in Devonport have blown out to $375m, the state government says.

As the first of the new vessels began sea trials, Transport Minister Eric Abetz and Infrastructure Minister Michael Ferguson revealed the latest surprise for taxpayers about the project.

Originally costed at $90m in 2019, the cost of the development was upgraded to $240m following the pandemic and the effects of the war in Ukraine on global steel production.

“TT-Line has advised the government that the latest total cost estimate for the development of Berth 3 project is approximately $375 million, including costs already incurred to date,” the ministers said in a statement.

Spirit of Tasmanian IV first sea trial. As the build of Spirit of Tasmania IV nears completion, the ship took to the open seas for the first time on a five-day trial run from Rauma Marine Constructions in Finland. Picture: Spirit of Tasmania

Labor shadow treasurer Josh Willie said the government had serious questions to answer after denying in parliament the blowout was “around $350m”.

“Does the Premier believe $375 million is not ‘around $350 million’?” Mr Willie said.

“Tasmanians are sick of this government’s failure to deliver major projects, with these critical wharf upgrades joining a long list of broken promises.

“They’re also fed up with the government’s refusal to be honest about delays and cost blowouts.”

Labor MP Josh Willie speaks to the media on the Hobart waterfront on June 26, 2024.

It was revealed in state parliament after the March election that TT-Line had tipped another $80m in to help keep Finnish shipbuilder Rauma Marine Constructions solvent so the ships could be completed.

Mr Abetz welcomed the sea trials.

“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,” Minister Abetz said.

The port facilities will be completed in 2026.

TasPorts will undertake works at Devonport Port to ensure suitable berthing is available in time for the arrival of the first new ship when it arrives, the ministers said.

“The decision to rescind the preferred-contractor status was a unilateral decision taken by TT-Line within its responsibilities due to cost escalations,” Mr Ferguson said.

“The government’s position remains that appropriate berthing must be in place at Devonport to support the arrival of our new ships.

Bernard Dwyer CEO TT-Line. Picture: Nikki Davis-Jones

TT-Line CEO Bernard Dwyer said the new Spirit of Tasmania IV had just been put through a series of rigorous tests to check performance capabilities such as speed and manoeuvrability as well testing all of the key systems

“The ship performed well against every measure and we’re just really excited to see the ship

sailing for the first time,’ he said.

”Although there is still quite a lot to do before the ship is ready for service, this successful

sea trial brings us one step closer to bringing the ship home to Tasmania.”

Tasmanian Small Business Council chief Robert Mallett said the new ferries were an exciting development and can’t come soon enough.

“News today that the new Spirit of Tasmania ferry is on track to be here in the next few months will be music to the ears for tourism operators and Tasmanian travellers alike,” he said.

“Like the excitement of getting a new car or home, a brand spanking new ship with the word Tasmania emblazoned on its side will make us all hope that it is full of happy travellers and a little twinge of jealousy that it isn’t us this time.”

Originally published as TT-Line berth cost blowout as new ferry starts sea trials