TT LINE’s interim chairman Damian Bugg has told a Tasmanian parliamentary scrutiny committee the company should never have taken on the East Devonport terminal development for the new Spirit of Tasmania ro-paxes.
Mr Bugg, a KC, admitted TT Line made four crucial mistakes that have left company, the government and the state in a position of acute embarrassment given it will be at least two years before infrastructure will be ready for the $900 million ships, one of which is already complete.
Mr Bugg said “We are and were a ferry company that is structured and staffed to run efficiently and leanly as a ferry company, and here we were embarking on a fairly complicated infrastructure task.
“Mistake number one. Should we have taken it on? No. Should TasPorts have said: ‘Get out of the way, we’ll do it’? Yes. They’re the port infrastructure entity. Now, is that a mistake? I think it is,” Mr Bugg said.
The second mistake was that TT-Line was not adequately prepared for the scale and complexity of the project when it began and that there was “overconfidence” within the company’s ranks, which arose from the third mistake: an expectation the job would be as easy as the line’s relocation of its Victorian terminal from Melbourne to Geelong in October 2022.
He said that move from Station Pier to Geelong in Melbourne went smoothly because it was a tenancy arrangement by Geelong Port rather than a project undertaken by TT-Line: “Therefore, the degree of confidence we took from that exercise was one that we should not have attributed to our ability to continue to function as an infrastructure builder in Devonport,” he said.
“Fourth mistake: We should have elevated the situation to a cabinet level when it became apparent that we were falling behind schedule. But we had overconfidence, I think, within our ranks.”
“It’s embarrassing and disappointing, though it may be, and we’ve just got to get on with it. I can’t put the egg back together. It’s a mess. But what we can do is try and make the best of the mess,” Mr Bugg said.
Mr Bugg’s appearance came shortly after Minister for Transport, Eric Abetz, announced Spirit of Tasmania IV has successfully completed its voyage from Finnish builders RMC in Rauma to lay-up in Scotland’s Leith on 3 December at 1630 hrs local time.
Mr Abetz said extensive pre-planned sea trials were conducted with a surveyor on board, testing the vessel’s systems, performance and capabilities under real-world conditions before heading to Scotland.
TT-Line has secured a berth at Leith for a minimum of 30 days at an average weekly cost of $47,534 plus ancillary services while it expedites work to identify potential leasing or chartering options.
“I would note that this figure is significantly – seven times – less than the $280,000 peddled by the Leader of the Opposition, Dean Winter, who has been spreading misinformation as part of his fear campaign,” Minister Abetz said.
“It is prudent to relocate the ship to Leith whilst leasing options are explored. To have it relocated to Tasmania whilst these options are explored would be far more expensive and waste a significant amount of taxpayer money.”
The Government would continue to seek the best return on taxpayer investment, he said.
Readers can see Scottish media coverage of Spirit of Tasmania IVs arrival here:
‘Too big’ Australian ferry which doesn’t fit docks down under berthed in Scotland
