Botched Bass Strait ferries $717 million over budget
The faulty delivery of two Bass Strait ferries, where the ships were finished before the berth was ready, cost $717 million more than the original business case.
And the overall cost to taxpayers will be even higher because the price tag for bailout money and ongoing temporary accommodation is not included in the figure.
New, larger Spirit of Tasmania ships are expected to start sailings between the island nation and Victoria in October, years behind original schedule.
In 2024 the Tasmanian government and state-owned ferry operator TT-Line were left red-faced when it emerged a new, larger dock at Devonport would not be ready for ships in time.
TT-Line president Ken Kanofski told the parliamentary committee examining the project, which started in 2018, on Tuesday that the cost overrun was $717 million.
This figure includes the new Devonport dock construction announced in 2025, from $90 million to $493 million.
The $717 million does not include costs to keep the new ferries at the piers while they wait for the new pier to be completed.
It cost around $6 million for the Spirit of Tasmania IV to dock in Scotland over several months; both new ships are currently held in Australian ports.
TT-Line also received a $75 million cash injection from the state government in November.
It looks likely to receive more money from the state government when the 2026/27 budget is presented on May 21.
TT-Line has presented its financials to the state government but neither the company nor government ministers have speculated on whether more money could be on the way.
Mr. Kanofski told the committee that the company’s financial situation is currently very challenging.
He said TT-Line was in a situation where it operated four ships; two ferries currently operating and two ferries replacing them.
“This has a significant impact on our business. It’s also clear that we have a significant amount of debt, our interest payments are quite high,” he said.
The $717 million included about $280 million from the ships themselves, including to cover the effects of the Ukraine war on construction.
