Multiple factors blamed for cost blowout on Bruny Island ferry upgrades

Upgrades to the Bruny Island ferry loading facilities are expected to open soon at more than double their original cost, and 3.5 years late. Here’s how it happened.

Cars being loaded onto the Bruny Island Ferry during the busy school holiday period. Picture: Linda Higginson

Upgrades to the loading facilities for the Bruny Island ferry are expected to open later this month, three-and-a-half years later than promised and at more than double their original cost.

This project involves the installation of new ramps, gantry and associated mechanical and electrical components at Kettering and Roberts Point.

The new ramps have been under construction since before the start of the pandemic and are still not operational.

The upgrades were first costed at $7.5m and began in 2021. The ended up costing $15.3m and will be completed later this month.

Premier Jeremy Rockliff. Budget estimates. Picture: Nikki Davis-Jones

Premier Jeremy Rockliff told budget estimates hearings last week that things hadn’t gone according to plan.

“The mechanical work package which commenced in June 2021 … encountered contract delays,” Mr Rockliff said.

“It reached practical completion in May 2024 with the commissioning of the new ramp infrastructure.

“Delays for the mechanical works package was attributable to increased lead time and delivery of specialised hoist equipment from overseas.

“Additional design was required to facilitate the complex relationship between the ramp and vessels under varying tidal conditions.

“During installation of the new water gantries issues were encountered with the integration of the vessels and the new ramp and marine infrastructure due to differing berthing procedures. “

Ferry operator Sealink was given a ten-year contract to operate the service in 2018.

The state government stipulated during the tendering process no money would be spent on upgrades and potential contractors needed to show they could operate an efficient ferry service using the current infrastructure.

Cassy O'Connor Greens member for Hobart. Budget estimates 2024. Picture: Nikki Davis-Jones

Department of State Growth Deputy Secretary Strategy, Housing, Infrastructure and Planning Denise McIntyre told the committee the project had cost more than expected.

“It wasn’t a case of getting the numbers wrong,” she said.

“It’s a case of a cost estimate is undertaken under certain circumstances, and I believe the cost estimate was originally before Covid, so there was a lot of change and a lot of cost escalation in terms of material supply, labour, et cetera.

“The project took a lot longer to deliver than anticipated.

“There was a lot more design work required and redesign required to deliver the project.

“So, it wasn’t that it was a wrong estimate; it was that the circumstances changed.”

Greens leader Rosalie Woodruff said the upgrade had been poorly executed.

“A smoothly operating Bruny ferry is critical for island residents, but there’s been extensive issues and delays with upgrading the ferry terminals. The community are really unhappy it’s taken so long,” she said.

“Given the apparent bungles and delays, it’s not a surprise to hear the project cost has doubled.

It feels like this whole messy situation could have been avoided if the government had given this project the focus it deserved from the beginning.”