Talking Point: Splitting the Spirit build benefits Tasmania more

Shared build of Bass Strait ships means more than half the labour in Australia, particularly Tasmania, says David Singleton

MAXIMISE OPPORTUNITIES: An Austal workshop. Picture: COLIN MURTY, THE AUSTRALIAN

IF the COVID-19 pandemic has taught us anything, it is that as a nation we need to dramatically increase our local manufacturing capacity.

To that end, we commend the Tasmanian government for its decision to take another look at building as much as possible of the replacement TT-Line ferries in Australia and Tasmania.

The TT-Line ferry replacement offers an exciting opportunity to build the next generation Spirits of Tasmania here in Australia and Tasmania, and a once in a generation opportunity to bring manufacturing home.

Australia — including Tasmania — is the world leader in the design and construction of high speed aluminium ships, and as a nation we have also recently embarked on our biggest investment in world class ships for the Royal Australian Navy, to be built in South Australia and Western Australia.

Tasmania has a proud tradition of shipbuilding, with success stories like Incat, Taylor Bros and Lyncraft.

We understand that Tasmanians will want the new Sprits to be built 100 per cent locally if possible.

The fact is, however, if the Tasmanian government wants to replace the current TT-Line vessels with a like-for-like solution of two monohulls (which we believe is the best option), there is no way that work can currently be done entirely in Australia, let alone Tasmania.

We have assessed the sea conditions on the Bass Strait crossing. Our experts in vessel motions and passenger comfort analysis concluded a large traditional steel passenger/vehicle monohull, as originally sought by TT-Line, is indeed the best solution for this uniquely challenging route.

Our proposal offers certainty for passengers and freight operators with a continuation of the same two-ship, monohull service that has underpinned Tasmania’s economic growth for the past 15 years. We believe it would be unwise to change this successful arrangement.

We absolutely recognise that this a program being paid for by the Tasmanian government, so the first objective in terms of employment of our proposal will be to create as much employment in Tasmania as we possibly can.

CAPABILITY: Launch of the first of Austal's 21 Guardian class Pacific Patrol Boats at Austal's Pacific Patrol Boat shipyard in Western Australia.

It is our intention to put in front of the task force a solution that delivers certainty and best value for Tasmanian taxpayers, freight customers and travellers. Our plan will be based on the latest Industry 4.0 approach to manufacturing, building only what can’t reasonably be done in Australia — like the vessel structure in South-East Asia — and doing as much of the rest here as we possibly can.

This will involve two new purpose-built Australian-steel monohull vessels, with the hulls built and floated by an Austal-led Australian industry team, and the vessels completed and fitted out in Australia and Tasmania, by Australian and Tasmanian businesses and workers.

Vessel design, capacity and performance would be developed in concert with TT-Line, and comparable to the previously agreed FSG or Rauma design.

We believe such a split-build vessel construction program can see more than half the labour content of each vessel built here in Australia and particularly in Tasmania, potentially creating thousands of jobs.

While naturally Incat will want to put its own proposal forward to the task force, should the Tasmanian government determine to procure steel single-hull vessels we would be very keen to partner with them, as well as other Tasmanians shipbuilders and manufacturers.

Even more importantly, this will allow Tasmanian manufacturers, right around the state, to establish themselves as part of the new National Shipbuilding Enterprise and defence industry supply chain moving forward.

This model can be replicated for many other large steel vessels, naval, civilian and commercial, that Australia requires to be built over the coming two decades.

While it’s still early days, at this stage it appears that there are essentially three options on the table — high-speed catamarans built fully in Tasmania (Incat’s preferred option); single-hull vessels built 50-50 in South-East Asia and here (our proposal); or single-hull vessels built primarily in Europe (this appears to be state Labor’s position).

We believe that our split-build approach is the best value model for Tasmanian taxpayers, freight customers and travellers.

Critically, it also maximises Tasmanian jobs, at the same time giving TT-Line the boat it wants and needs and setting up Tasmania for a long-term role in the National Shipbuilding Enterprise.

Now is the time to be bold and seize the opportunities before us.

David Singleton is chief executive of Austal. Based in Perth, Western Australia, Austal has a turnover of more than $2 billion, employs 6700 people around the world in shipbuilding and is the only foreign company to have prime contracted ships for the US Navy.