TT LINE has been forced to allocate $9 million to ship-and-shore modifications after admitting the company sent wrong specifications to berth-builder TasPorts.
TT chairman Ken Kanofski told Tasmania’s Parliamentary Public Accounts Committee yesterday [28 October] that previous management had ignored advice from TasPorts that in 2023 it had supplied incorrect fender specifications for East Devonport Berth 3.
Despite strenuous questioning by TasPorts “TT-Line reiterated that, as the client, they wanted the specification that they had asked for and refused permission for TasPorts to speak to the ship builder [RMC],” Mr Kanofski said.
(For those not au fait fenders are in effect shock absorbers that dissipate the kinetic energy of the berthing ship as it meets the wharf structure).
Mr Kanowski said a team reviewing all aspects of the Spirit of Tasmania ro-pax replacements project had uncovered the problem - the fenders have been built much stronger than necessary - and determined remedial action was necessary.
The matter had never been escalated to the board or government: “In my view, it was a failure in project governance that allowed this human error to go undiagnosed and unchecked,” Mr Kanofski said.
“Prior to... us doing a full project recovery, the project did not have what I would call the normal checks and balances and governance that I would expect to see in a project of this scale,” he said, characterising it as having lacked the independent assurance and oversight it now has.
He said this lack of governance was also reflected in the vessel construction phase.
“The vessels were largely built by the time this board and management took over, but the vessel build, probably similarly, didn't have the same level of project governance that I'd expect to see,” he said.
DCN understands there will have to be modifications to the fenders and strengthening of the hulls of Spirit of Tasmania IV (currently laid up in Geelong) and V (now confirmed as following its sistership to initial lay-up in Leith, Scotland, next month, before delivery to Australia next May). The work on both ships will be undertaken next year.
Mr Kanofski also advised the PAC that work is continuing to explore other storage options in Victoria for the two ships. Spirit V has completed berthing trials in Geelong with only minor alignment adjustments required but is forced to lead a peripatetic existence moving between various berths and anchorage to accommodate port requirements.
Last week infrastructure and transport Minister Kerry Vincent announced TT-Line would receive a $75 million equity injection in this week's interim state budget, to help it maintain a “strong financial position” going forward. In July, the company's borrowing limit was raised from to $1.035 billion to $1.445 billion.