Tasmanian government, TT-Line cancel ferry newbuilding contract with Finnish shipyard

Australian vessel operator TT-Line Company has been advised by the TT-Line Shareholder Ministers that the Tasmanian State Government will not proceed with the proposed vessel replacement contract with Finnish shipbuilder Rauma Marine Constructions due to Covid-19 and its economic implications for the state.

Chairman Michael Grainger said the government indicated that, given current and emerging economic problems caused by Covid-19, there needed to be more consideration of local content and manufacturing jobs in Tasmania and Australia as part of the overall vessel replacement project.

Mr Grainger has assured that the decision to cancel the construction of the new Ro-Pax ferries originally scheduled to commence in early 2021 was not an indication that Rauma was incapable of delivering the vessels within the timeframe agreed upon by the parties involved.

Mr Grainger added that the government and TT-Line still believe it is essential that the older vessels in the fleet are replaced in the coming years to support the growing passenger and freight transport needs of the state.

Rauma CEO Jyrki Heinimaa said that the company remains open to resuming negotiations with TT-Line on future newbuilding projects.