The Tasmanian Government will prioritise the construction of berthing infrastructure at Berth 3E, proceeding with the most cost-effective and efficient recommendation provided by engineering and infrastructure experts Ben Moloney and Peter Gemell.
Revised timelines show the new Terminal 3 may not be completed until February 2027 unless risks are appropriately managed or mitigated. By accepting opportunities to accelerate the construction of Berth 3E infrastructure, it is anticipated that the completion date can potentially be brought forward to October 2026, in time for the 2026-27 peak summer period.
Announcing the way forward, Premier Jeremy Rockliff said that the Tasmanian Government would focus its resources on delivering the permanent berthing infrastructure as soon as possible.
"This situation we are in is extremely regrettable – but Tasmanians want us to deliver a solution," the Premier said.
"We have said we will sort the spirits, fix the GBEs and back Tasmania's tourism industry, and that's what we are doing today.
"Without the intervention of the Government and inserting Ben Moloney and Peter Gemell into the Project, it is likely that this project may not have been finished until much later, with several timing and risk mitigations already instigated."
Minister for Transport, Eric Abetz, said while modifying Berth 1E was investigated in order to bring the vessels to Devonport sooner, the Report has found it would be unsafe.
"Options to modify both Berth 1E and Berth 2E were also investigated but found any modifications would provide limited benefits, cost the taxpayer up to $60 million and would require significant timely and costly compensation and renegotiation of agreements. It would also pose risks of vessel allision," Minister Abetz said.
"Ultimately, any financial investment into Berth 1E and Berth 2E would outweigh the benefits of bringing forward the timeline.
"With the first new Spirit of Tasmania vessel due to depart Finland in the coming weeks, TT-Line is now exploring opportunities to lease or charter the vessel during the interim period.
"It is still planned that the vessels will come to Tasmania for finalisation of fit-out."
By leasing the vessels, Tasmanians will directly benefit from the financial returns and avoid the need for vessel storage costs. Leasing of the second vessel – which is expected to be delivered by the second half of 2025 - will also be explored.
Should leasing opportunities not prove financially beneficial, TT-Line will seek a cost-effective medium-term storage option in Tasmania. If this eventuates, the Tasmanian Government will ensure that TasPorts will not charge TT-Line to store the vessels.
Minister Abetz said the Government expects TasPorts and TT-Line to work together and act in the best interests of Tasmanians.
"We will continue to oversee the delivery of this project, with the support of infrastructure delivery experts Ben Moloney and Peter Gemell," Minister Abetz said.
"Despite the challenges, Tasmanians can be confident that Peter and Ben will get this project back on track and delivered."
The Government has also released a significant tourism and hospitality package that will drive visitation, support our regional communities and boost Tasmania's economy.
The Premier said we absolutely expect that visitor demand will continue to increase as more and more people realise that Tasmania is the best place in the world.
"I will also be bringing forward further proposed reforms to our government businesses shortly so that Tasmanians don't experience a situation like this again," Premier Rockliff said.
The full report will be publicly available on the Department of State Growth's website.
A new webpage will also be launched, hosting regular project updates, tracking and information. This will be available on the Department of State Growth's website in the coming days.
