NEW Bass Strait ro-paxes Spirit of Tasmania IV and V undertook their maiden commercial passenger services from Devonport and Geelong on Saturday night [31 October] with only minor problems reported.
Local media reported Spirit IV passengers faced difficulty accessing their cabins due to key-card printing failures and also battled point-of-sale delays for food and drink and periodic closure of the main eatery. Spirit V seems to have enjoyed a smoother crossing to Devonport, where a civic reception was held by Tasmanian premier Jeremy Rockliff.
Mr Rockliff said the reaction of passengers on both crossings had been very enthusiastic while TT-Line chief executive Chris Carbone said it was an amazing feeling.
"What I'd say is be kind. There's always going to be teething issues like that when you open a hotel," Mr Carbone said.
"Hundreds of passengers were super excited and it was a really proud moment for the crew. They've been waiting for this and it was just really special to see how excited the crew were to show off the amazing ship."
Mr Carbone told media that reception to the new facilities, such as business-class recliners and updated cabins, was positive.
While social media video shot on board appeared to show the ships were far from full, DCN understands passenger numbers have been capped initially while services are ‘run in’.
Meanwhile, TT-Line’s 2025/26 annual report reveals the company recorded an accounting loss of $723 million, the bulk of which was attributed to substantial asset write-downs – of the old and new ferries and the terminals in Geelong and Devonport:
In the annual report company chairman Ken Kanofski notes that TT-Line’s new Board and management team "began the extensive task of addressing the significant financial challenges we inherited.
"The board has fully quantified the $717 million overrun against the original business cases for the vessel and berth replacement projects and developed a plan to respond. The company’s financial forecasts have been rebuilt from the ground up, drawing on evidence and specialist advice. An equity injection proposal was prepared and presented to government. It is realistic—neither overly pessimistic nor overly optimistic," Mr Kanofski wrote.
"The government endorsed the plan and, following the passage of the Tasmanian Budget in June 2026, TT-Line will receive equity injections of $506 million over the next four years. As with any plan, there are risks. Importantly, however, the business has traded ahead of forecast since the board adopted the plan in October 2025.
"In 2025/26, TT-Line worked with its lender, TASCORP, to ensure its debt maturity profile supported development of the financial plan. With the plan now endorsed, TT-Line will continue working with TASCORP in early 2026/27 to reprofile the company’s debt in line with its updated financial forecasts. Debt levels will remain high for the foreseeable future, with repayment not forecast for approximately 25 years.
"Operating performance remained under pressure from the need to operate four vessels, while only two generated revenue. Operating profit or earnings before interest, taxes, depreciation and amortisation (EBITDA) was $1.544 million, compared with $23.942 million in 2024/25.
"The company’s assets were also subject to impairment testing as at 30 June 2026, resulting in non-cash asset write-downs totalling $646.9 million and therefore a net loss after tax of $723 million. Importantly, this write-down does not affect the quantum of the Tasmanian government’s equity injection."
According to TT-Line, the size of the market value writedowns had been driven by several factors including:
"While the market value is important, it is noted that only the current ships, Spirit of Tasmania I and II, are for sale and all other assets are expected to be in TT-Line service for 30+ years," said Mr Kanofski.
"While financial sustainability was a key focus in 2025/26, TT-Line completed 868 sailings and carried 413,262 passengers (an increase of 3.6% from 398,814 last financial year) while maintaining high levels of customer satisfaction."
Mr Kanofski praised the work of new CEO Chris Carbone, appointed in May 2025, saying he had worked hard to maintain revenue amid softer demand driven by global uncertainty; begin refreshing the executive leadership team; rebuild relationships with the tourism and freight sectors; improve safety both on board and landside; and reduce the business’ cost base.
"The reinvention and modernisation of every aspect of the business will continue for some years to come," Mr Kanofski said, while assuring the company "is solvent … and in good shape for the future".