Tasmania’s troubled Spirit of Tasmania ferry project has blown its budget by $717 million, a parliamentary inquiry has been told.
The Public Accounts Committee on Tuesday probed the latest figures behind the long-delayed vessel replacement program, which kicked off in 2018.
TT-Line chairman Ken Kanofski confirmed the overrun spans the two new ships and their berthing facilities.
“We believe the total vessel replacement and the two berths have an overrun of about $717 million,” Kanofski said.
The biggest blowout sits with the new Devonport berth, originally pegged at $90 million but now budgeted at $493 million.
The two new ships, Spirit 4 and Spirit 5, built in Finland by Rauma Marine Constructions, account for another $280 million in extra costs.
The $280 million vessel overrun is made up of an €82 million increase from the change in shipbuilder, a €25 million contract adjustment with RMC, an €8 million adjustment for the Russia-Ukraine war and €50 million in direct shipbuilder support.
Committee chair Ruth Forrest used the hearing to question ministerial oversight of TT-Line.
“This is the problem that led to the disaster that these guys have been called in to fix,” Forrest said.
The $717 million figure covers capital costs only. It excludes the price of berthing the new ships overseas while Devonport is finished.
Kanofski said monthly berthing costs ran from $600,000 in Scotland to $900,000 at Geelong.
The company’s operating cash flow is sitting at negative $20 million.
TT-Line is currently running four vessels with only two earning revenue.
“I would describe the current financial position as very challenging,” Kanofski said.
He confirmed TT-Line has lodged a confidential request for government support but declined to share details, citing cabinet confidentiality.
The new ships and Devonport berth are expected to be operational by October 2026.
The state budget will be handed down on May 21.
