Spirit of Tasmania new Devonport berth costs blow out, but government says it will be finished quicker

Australia Broadcast Center

09-05-2025

The Tasmanian government has revealed another cost blowout to berth infrastructure to host the two new Spirit of Tasmania ferries, with the project now set to cost nearly half a billion dollars.
Transport Minister Eric Abetz told a parliamentary committee on Friday morning that the berth works in Devonport were now set to cost $493 million — up from an estimate last year of $375 million.
Last year's figure was itself an increase from an original estimate of $90 million provided by state-owned ferry operator TT-Line, and TasPorts.
Mr Abetz said it was "fanciful to suggest" the original figure was ever realistic, and a "clear failure" by TT-Line.
"For example, it did not include the contract to change costs arising from the previous board's decision to go back out for procurement, or project items, which were either not priced or underpriced, but always required as part of the project delivery," he said.
The vessel replacement project has been beset by delays and cost blowouts, both to the ships themselves and the berthing infrastructure, while the saga has seen heads roll in the government and on TT-Line's board.
The ships — being built by Finnish shipbuilder Rauma Marine Construction — were originally expected to arrive in the state in late 2024.
One of the two vessels is already complete and sitting in dock in Scotland, waiting for a suitable berth in Tasmania, and the other underwent its first sea trial last month.
Last year, when announcing new timelines for the project, Premier Jeremy Rockliff said the berth would not be ready until February 2027, but that the government was pulling out all the stops to try to get it ready for October 2026.
Mr Abetz told the committee this morning, that the best-case estimate of October 2026 was now confirmed, calling it "good news".
"The government has always said it would pursue every opportunity to bring forward the time frame for the delivery of berth 3 infrastructure — this required design, planning and negotiation," he said.
Since December last year, the first of the new vessels, Spirit of Tasmania IV, has been at the Port of Leith, in Scotland.
The ship had been stored there while the state government was investigating if it could be leased to other companies in the meantime, but in early March announced it would end those negotiations and bring the ship to Tasmania.
To the end of March, the state government had paid $3,554,552 for berthing costs.
Mr Abetz said Spirit IV would depart Leith "on or around" May 26, and begin its journey to Hobart for its final fit-out.
Those works are expected to take six to eight weeks.
It is unclear where the ship will be stored after that.
"But obviously we want to look at Tasmania in the first option."
TT-Line acting chief executive Kym Sayers said the vessels could anchor in Hobart's River Derwent.
Company chair Ken Kanofski said leasing options for the second vessel, Spirit V, had not been ruled out — but were "highly improbable".
Spirit V is nearing completion in Finland. Mr Abetz said the ship was getting its finishing touches, with a second set of sea trials scheduled for later this month.
"It's anticipated that once complete, the vessel will sail before the commencement of the northern ice season in November," he said.
"Plans for relocating Spirit of Tasmania V to a suitable berth post-this are yet to be finalised."
Mr Abetz also revealed in this morning's hearing that the ships had approval by the harbour master to operate in the Mersey River at Devonport.
Mr Abetz said speculation over whether the vessels could operate in the Mersey had "kept me awake at night".
"I am pleased to table advice recently received by TT-Line from the harbour master confirming that the new vessels will be able to safely enter the port, swing in the swing basin, and then both berth at and depart from the new berth," he said.
At 212 metres long, both Spirits IV and V are 18 metres longer than the current vessels.
Due to their size, they cannot be operated out of the existing Spirit of Tasmania berth without impacting the operations of the shipping company SeaRoad.