Australia’s ‘biggest infrastructure stuff-up’: Bass Strait ferries on ice until 2027
It’s been labelled Australia’s biggest infrastructure stuff-up and the business community is furious. If you thought Tassie’s ferries fiasco couldn’t get any worse, you were wrong.
In what is labelled “Australia’s biggest infrastructure stuff up”, two new $900m ferries will be leased out or stored for up to two years because their new berth is not ready.
Tasmania’s ferries fiasco deepened on Thursday after the state government revealed the two new Spirit of Tasmania Bass Strait passenger and car ferries may not have a suitable berth built until February 2027.
The delay, on top of estimated $500m-plus budget blowouts and years of previous delays, led the state’s business community to suggest it had lost trust in the state’s Liberal government.
“This is a dark day for Tasmania,” said Michael Bailey, chief executive of the Tasmanian Chamber of Commerce and Industry. “This is even worse than we first thought.
“The economic costs will be felt by businesses and taxpayers for years to come, our brand has been damaged and it has impacted on business confidence…It will be very difficult to trust this government again because of this.”
It is estimated each year of delay in deploying the new larger capacity Finnish-built vessels on the busy Geelong-Devonport run will cost the state $350m in lost revenue.
The extraordinary failure to build a wharf capable of accommodating the new ships, despite years of notice, has already cost Treasurer Michael Ferguson and two ferry bosses their jobs.
Premier Jeremy Rockliff on Thursday said an expert report into how to best respond to the “extremely regrettable” situation had now advised the new Berth 3 may not be ready until February 2027.
Previous plans for a temporary solution at a nearby wharf had been rejected as too slow, costly and risky, given the proximity to commercial shipping.
Instead, attempts would be made to build Berth 3 by October 2026, allowing the new ships into service for the 2026-27 peak summer season, while leasing them out until then.
The first new ferry is due to leave Finland in coming weeks and the second is due to arrive by the second half of 2025.
While leasing could provide some income to offset cost blowouts – and to fund $25m tourism industry compensation announced this week – the government conceded it may not be “financial beneficial”.
In this case, the government said it would find a “medium-term storage option” and direct the state-owned port authority to provide it for free.
Mr Rockliff said the government – which has blamed its own ferry and ports government businesses enterprises for the blunders – would also reform these bodies.
“We will sort the Spirits, fix the GBEs and back Tasmania’s tourism industry,” Mr Rockliff said.
Transport Minister Eric Abetz said infrastructure delivery experts Ben Maloney and Peter Gemell would continue to help oversee project delivery.
“Despite the challenges, Tasmanians can be confident that Peter and Ben will get this project back on track and delivered,” Mr Abetz said.
Labor leader Dean Winter said the fiasco was now “even worse than anyone could have imagined”.
“The additional delay will cost our tourism industry another $500 million,” Mr Winter said. “When they do arrive, the Spirits will be second-hand.
“Tasmanian taxpayers have paid nearly a billion dollars for new ships, but it’s now another country’s tourism industry that will benefit first. It is a national embarrassment.
“This could well be the biggest infrastructure stuff up in Australian history.”
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