UPDATE: Taxpayers in Tasmania will pay a staggering $75 million to assist the struggling operator of the Spirit of Tasmania ferries, as the company grapples with significant financial challenges. This urgent announcement comes just ahead of the November 2025/26 budget, which will allocate funds to address “medium-term” issues faced by the state-owned operator, TT-Line.
The decision follows revelations that human error is responsible for an additional $9 million in upgrades required for the new ferries and their still-unfinished berth in Devonport. The two replacement ferries are now delayed and are not expected to enter service until late 2026, causing frustration among Tasmanians and raising concerns about the management of public resources.
In a press conference, TT-Line chair Ken Kanofski stated, “What we said is ‘we need a buffer’; we don’t want to run too close to the wind.” Kanofski confirmed that the company had initially requested $100 million from the government but is now focusing on ensuring the operator’s long-term financial sustainability.
The situation has been labeled one of the most significant infrastructure failures in Australian history, with costs ballooning from an original $90 million to $493 million for the Devonport berth alone. The increased borrowing limit for TT-Line, now set at $1.445 billion, underscores the magnitude of the financial strain the operator is facing.
Kanofski explained that $9 million will be used to reinforce the hulls of both vessels and adjust the shock-absorbing wharf fenders at the Devonport berth. The fenders were constructed to a higher strength than needed due to incorrect specifications provided by TT-Line. “It was an error. It was clearly human error by TT-Line in 2023,” Kanofski admitted.
Critics have not held back in their response. Labor opposition MP Dean Winter condemned the government for allowing this situation to escalate, stating, “The bill from the biggest infrastructure stuff-up in Tasmanian history keeps growing.”
The Tasmanian government has indicated it may consider the remaining $25 million of TT-Line’s initial request if further financial support is necessary. As the situation develops, residents are left questioning the management of public funds and the future of the Spirit of Tasmania ferries.
With rising costs and ongoing delays, all eyes are on the state government and TT-Line as they navigate these turbulent waters. Stay tuned for updates on this unfolding story, as it impacts both the economy and the lives of Tasmanians.
