Australian transport operator TT-Line Company will receive a AU$506 million (US$360 million) funding injection from the Tasmania State Government to be paid out over the next few years.
Infrastructure Minister Kerry Vincent said that the funding would not add to the cost of the project that would introduce two new Ro-Pax ferries under TT-Line Company's Spirit of Tasmania banner.
The new ferries, sister ships Spirit of Tasmania IV and V, were built by Rauma Marine Constructions of Finland and were to replace older vessels in operation along TT-Line's Bass Strait routes. However, technical issues and a lack of adequate wharf facilities have prevented the vessels from entering service as originally scheduled.
The ferries were formally handed over to TT-Line in 2024 and 2025, respectively, but have yet to commence operational sailings.
During a parliamentary inquiry held earlier this month, TT-Line Chairman Ken Kanofski revealed that the Spirit of Tasmania ferry replacement program has resulted in cost overruns totalling around AU$717 million (US$511 million).
The bulk of the total amount stemmed from the construction of dedicated berth facilities at Devonport, which has ended up costing around AU$403 million (US$287 million) higher than the original estimate of AU$90 million (US$64 million).
Mr Kanofski nonetheless assured that both ferries were "on track" to begin operating along Bass Strait from late October of this year.
"I can never understand why governments are so attracted to ferry ownership when it almost inevitably dooms them to disaster like moths to a flame," Dr Neil Baird, ferry safety advocate and Baird Maritime co-founder, wrote in 2024 shortly after TT-Line's then-Chairman Mike Grainger was forced to resign following disagreements with state ministers over the reasons for the ferries' delays.
"Nevertheless, they are particularly democratic governments and, more particularly still, Anglo-Saxon democratic socialist governments in countries like the USA, UK, Canada, Australia and New Zealand. Perhaps it is because ferries are big, obvious and employ lots of people. That makes them attractive to socialist politicians who love to keep their union friends on side."