Source : Perth Now news
After years of delays and hundreds of millions of dollars in cost blowouts, new Spirit of Tasmania ferries are firmly on track to begin sailing on their revised start date.
The project made headlines in 2024 when it was revealed the two vessels would have to sit idle because a new berth in Tasmania wouldn’t be ready in time for the ships.
Their revised Bass Strait sailing start date of October 31 was essentially locked in, a parliamentary inquiry was told on Friday.
“We are absolutely on target,” said Ken Kanofski, chair of state-owned company TT-Line which operates the ships.
The new berth in Devonport would be finished in September and test sailings across Bass Strait would occur in late October, the inquiry was told.
In a huge hit to Tasmania’s budget, TT-Line’s delivery of the two new larger replacement ferries has been $717 million over the project’s initial estimate.
The price tag for the new berth in Devonport blew out to $493 million from an initial estimate of $90 million.
TT-Line has also been forced to fork out millions of dollars to hold the ferries in berths, including in Scotland, Victoria and Tasmania, while the new terminal is being constructed.
The company was given a $506 million government bailout in the May 2026/27 state budget to cover past capital cost overruns.
The project has been labelled by the state’s Labor opposition as the biggest infrastructure stuff-up in Australia’s history.
Mr Kanofski told the inquiry TT-Line’s debt was expected to peak in 2028 at about the $1.1 billion limit and it was not expecting to ask the government for additional bailout money.
There was also strong interest from buyers for the existing two Spirit of Tasmania ferries, he said.
