Spirit of Tasmania: Further delays for new vessels as cost of missed targets revealed

TT-Line’s 2022–23 figures were a ‘beautiful set of numbers’, as ex-PM Paul Keating may have said, but mounting delays to the two new vessels being built in Finland come with a dire economic penalty.

Concept design of new Spirit of Tasmania vessel currently under construction at Rauma Marine Constructions in Finland. Picture: Spirit of Tasmania

TT-Line’s current ferries were “going gangbusters” and the new vessels expected next year have the potential to boost capacity by 40 per cent, Minister for Infrastructure and Transport Michael Ferguson says.

But Labor has pointed out that the ships have been delayed from last July until next August – which was costing the local economy millions in lost tourism revenue.

Mr Ferguson said TT-Line was bouncing back strongly from the Covid-19 downturn, making a

profit of $8.6m for the year after a loss of $14m the year before.

Total revenue increased to $307m – up from $240m in 2021–22 thanks to a lift in passenger numbers of more than 50 per cent, from 284,000 to over 450,000 in 2022–23.

Day sailings have proven to be highly popular for caravans and motorhomes, and in 2022–23 the company had 199 day sailings compared to the 145 day sailings the previous year.

“This was an absolute record number of day sailings for the company, eclipsing the previous record of 169,” Mr Ferguson said.

New Spirit of Tasmania IV naming and launching ceremony in Finland. Picture: Janika Heikkonen

Government business estimates committee hearings in Hobart heard the increased capacity of the new ferries will reduce the need for day sailings, which can be kept in reserve for future service expansions.

Labor leader Rebecca White said she was disappointed to hear the deliver of the ships had been delayed yet again.

“This is just the latest in a long line of delays since the Liberals promised Tasmanians they would ‘deliver two new, purpose-built Spirit of Tasmania vessels in 2021, two years ahead of schedule’,” she said.

A contract with a previous shipbuilder had to be torn up, and the Liberals then falsely tried to tell Tasmanians they would build the Spirits locally, which was never realistic. Further delays then led to the delivery date being pushed out to the first quarter of next year – too late for peak season.

All these delays and false promises are costing Tasmania’s economy dearly. Eminent Tasmanian economist Saul Eslake has calculated that every year of delay costs the economy $350 million.

Originally published as Spirit of Tasmania: Further delays for new vessels as cost of missed targets revealed