FOLLOWING advice last week that TT Line is running out of money and already in breach of loan covenants the Tasmanian Government will inject equity of $75 million in next week’s state budget.
The government lender, TasCorp, gave evidence to the Standing Committee of Public Accounts that when it raised TT Line’s borrowing cap from $1 billion to $1.4 billion in July, the GBE already had borrowings of $988 million.
TasCorp chairman Gary Swain told the committee the borrowing was not sustainable and the base case for that additional loan was “somewhat optimistic” with TT Line already breaching one condition of the loan and likely to breach three more next year.
TasCorp itemised how the cost of the new ro-paxes Spirit of Tasmania IV and V had effectively doubled since financing of $620 million was first agreed in 2018. The cost of the still-to-be completed new East Devonport terminal started at $90 million, later much revised to $493 million and now reported by local media to exceed $500 million.
State infrastructure minister Kerry Vincent today [27 October] confirmed next week’s interim budget would include a $75 million bailout, $25 million less than TT Line had sought, with the shortfall to be negotiatd between Treasury and the company’s board.
The money would ensure the company remains in a “strong financial position” to introduce the new ships to Bass Strait service in October next year.
Separately, Mr Vincent announced local company VOS Construction and Joinery has been awarded the $16 million contract for the terminal building at East Devonport Berth 3.
The terminal building – a timber-framed building that will be built with locally sourced timber that showcases Tasmanian materials – is the public face of the site. Its design reflects Tasmania and its landscapes, reinterpreting Devonport’s maritime heritage through a contemporary port shed form.
Vos Construction Manager Northern Tasmania Kieran Rimmelzwaan said the terminal project included the construction of the terminal building itself, car parking, landscaping, and a wash bay.
“This work follows Vos's previous work on the site, which involved building seven ancillary buildings,” he said.
"We also built two retaining walls at the site. The first, at the southern end, is 163 meters long and separates the freight yard and the freight entrance driveway, while the second is 175 meters long and located further north.
"Across the life of the Devonport project, Vos and its subcontractors will have approximately 100 to 120 people involved with the work, both on-site and at the workshop.
"Vos is a major employer of apprentices on the north-west coast, so it is important that the company secures work like this for the work development of its apprentices and the industry’s overall benefit.
“It allows us to keep employing apprentices, which benefits the building and construction industry on the north-west coast.”
TT Line CEO Chris Carbone construction activities on site were progressing on schedule to go live in October 2026, with all marine pile casings are complete ahead of schedule.
“The fabrication and delivery of the gantry is a key focus of the project team,” Mr Carbone said.
“Its fabrication commenced in May this year. A trial assembly was held this month and was successful. The gantry will now be painted and packed for shipping to Tasmania.”
Mr Carbone said he expected the gantry to be shipped to Tasmania in the first week of January 2026 and arrive in Devonport in February 2026.