A $9 million blunder has rocked Tasmania's Spirit ferry operation, but how did it happen? This scandal-ridden project has been plagued by delays, cost overruns, and now a massive mistake that has everyone scratching their heads.
The rollout of the new Spirit of Tasmania vessels has been nothing short of chaotic. From an $81 million bailout to a Finnish shipbuilder just before an election to the shocking revelation that a new wharf's cost had ballooned from $90 million to a whopping $493 million, it's been one controversy after another. And that's not even mentioning the delayed wharf, which left the new vessels stranded in Finland with no place to berth in Tasmania, resulting in temporary berthing in Scotland and an additional $7.7 million expense.
But here's where it gets controversial: two state-owned companies, TT-Line and TasPorts, were at odds throughout this entire debacle. A public slanging match ensued, a minister resigned, boards were replaced, and a 'recovery' process began, only to uncover even more problems. One such issue was the installation of wharf infrastructure to incorrect specifications, a decision made by TT-Line despite warnings, resulting in a $9 million fix.
So, how did this latest issue come to be? It all started back in June 2023 when TT-Line and TasPorts' relationship over the ferry replacement project was already strained. Former TT-Line management claimed they were promised access to the port but didn't receive it until almost a year later. An exchange between project staff revealed that TT-Line wanted to change the specifications for the fenders, the infrastructure that ensures safe berthing, but TasPorts questioned this and wanted to consult the Finnish shipbuilder. However, according to TT-Line's new chair, Ken Kanofski, this request was refused.
"TT-Line insisted and said, 'We know best, they're our ships.' As it turns out, the original specification was correct," Kanofski stated. TasPorts did their job, but the issue wasn't escalated to the board or government, leading to the installation of three fenders to incorrect specifications, potentially causing problems in harsh weather.
Over a year later, the disputes between the companies went public, with TasPorts chairman Steven Bradford claiming continuous concern over TT-Line's wharf project management. A new team was brought in to guide the ferry replacement, and by January 2025, TT-Line had a new board, management, and a special team. Towards the end of June, they identified "challenges" with the fenders, leading to another investigation.
It's unclear if the person responsible for the 2023 issue is still employed, as TT-Line refused to comment on individual employee matters. The issue was kept behind closed doors until September 26, when it was briefly referenced in a government press release as "upgraded hull specifications." Ministers downplayed the issue, comparing it to adjustments made to a new house.
"In the grand scheme, this is a very minor issue," Kanofski stated. However, the full extent of the fender and hull issue was revealed during a public parliamentary hearing. The solution involves welding extra steel into the hulls of the new vessels, with Spirit V's work completed overseas and Spirit IV's done locally, costing a total of $9 million.
Both TT-Line and Premier Jeremy Rockliff claimed transparency throughout the process, with Rockliff stating, "This is a company that will deliver for our economy. That's why we make strategic investments."
The issues facing TT-Line persist, and in the coming months, the company will present a revised corporate plan to the government to address its long-term financial problems. With the company at $1 billion of its $1.4 billion debt limit and the need for further government support likely, the future remains uncertain. So, what do you think? Was this a simple mistake, or is there more to uncover? Feel free to share your thoughts in the comments below!
