Spirit of Tasmania IV undergoing sea trials in Finland. Photo: RMC.
The Tasmanian Government has accepted the resignation of the chair of TT-Line Michael Grainger as the delivery of two new ferries for the Bass Straight crossing service continues to slip.
In a brief statement on 14 August, Minister for Transport Eric Abetz and Treasurer Michael Ferguson said the government had requested and accepted the resignation of the chair of TT-Line, effective immediately.
“It has become clear the relationship between the government and the chair has become untenable,” the statement reads.
“The government is committed to delivering the new Spirits and the infrastructure to support their arrival.
“The Tasmanian Government is confident that the project can now move forward – collaboratively and in partnership with TT-Line, TasPorts and the Department of State Growth – and we look forward to soon welcoming the new Spirits into the waters of the Mersey.”
The move comes as the two new vessels – Spirit of Tasmania IV & V, both of which are undergoing sea trials – being built by the Rauma Marine Constructions (RMC) in Finland are several years late and more than $80 million over budget.
Further, the cost of new berthing facilities in Davenport have blown out from an estimated $90 million in 2020 to more than $375 million by mid-2024, and they won’t be ready until early 2026.
Despite the new vessels being larger than the ferries they will replace, they will have a restricted payload while operating from an upgraded berth at Davenport.
The delays to the ferries were exacerbated by the failure of TT-Line management to inform the government of the delays at RMC and the Davenport berth works.
Mr Ferguson told the Tasmanian Parliamentary Public Account Committee last week that, despite being “aware of concerns in the civil contracting industry”, he was “firmly assured” by TT-Line that there was no cause for concern surrounding the berth works.
In light of the delays, the Tasmanian Government has appointed two infrastructure experts – Ben Maloney and Peter Gemell – to oversee the works at Davenport and has ousted Mr Grainger.
On 15 August, Mr Abetz and Mr Ferguson said TT-Line board member Mr Damian Bugg would serve as the interim chair.
Tasmanian Premier Jeremy Rockliff said he had made his disappointment in the delays clear, describing them as “frankly not acceptable”.
“We will pull out all stops to get this done as soon as possible,” he said. “I’m not interested in excuses, or the blame game. I want solutions and I want them now. That’s what Tasmanians deserve and expect.”
In a 14 August statement, TT-Line and Mr Grainger disputed some of the evidence given to the parliamentary committee.
“Out of respect for the PAC process, while noting the significant community interest in the matter, we will be providing our factually correct evidence to the PAC first,” Mr Grainger said.
“At a high level, the board … stands by its recent decisions and the processes around those decisions, particularly related to paying additional funds to … RMC to complete our two new Spirit of Tasmania ships.
“Further, we look forward to explaining in greater detail the context for the decisions the board took in relation to the terminal development at berth three in Devonport.”
Mr Grainger said the company would shortly take delivery in Finland of the first of its new Spirit of Tasmania vessels to operate between Devonport and Geelong.
“The company is very much looking forward to receiving a date from TasPorts for when berth one will be ready to accommodate our first new Spirit of Tasmania vessel, Spirit of Tasmania IV,” he said.
“We have signed a contract with a partnership comprising national and Tasmanian companies – Spirit Partners – to relocate our Devonport base of operations from its existing berth one to berth three.
“BMD Constructions, with which we worked closely to deliver Spirit of Tasmania’s Geelong Port facility, will be joined in the partnership by Fitzgerald Constructions Australia (which also worked with BMD in Geelong) and local Tasmanian companies Bridgepro Engineering, Gradco and Vos Constructions.”
