TT-Line will receive a $75 million bailout in next week’s interim state budget, as the troubled Spirit of Tasmania project faces mounting financial pressure.
The ferry operator had asked for $100 million in equity from the government, with its board to work with Treasury if the remaining $25 million is needed.
Infrastructure Minister Kerry Vincent said the “injection” was necessary to ensure TT-Line remained in a “strong financial position going forward”.
“The strength of what TT-Line need to do is paramount for delivering these ships in October next year and to continue to deliver for the future of Tasmania,” he said.
The government has also lifted TT-Line’s borrowing capacity and is banking on the sale of the existing ferries to help meet financial commitments.
The announcement coincides with a $16 million contract awarded to local firm Vos Construction and Joinery to build the new passenger terminal in Devonport.
Featuring locally sourced Tasmanian timber, the terminal must be operational when Spirit 4 and Spirit 5 begin services between Devonport and Geelong in October 2026.
Vos director Darren Vos said his company was “totally committed to meeting that timeframe”.
“We are just pleased to be involved with the project and we’ll be putting our best foot forward to make sure that this meets the date,” he said.
Spirit 4 is currently in Geelong for commissioning, while Spirit 5 will depart Finland this week for Scotland before its final fit-out in Hobart next year.
The terminal project will employ up to 120 workers, with 20% being apprentices.
