THE TASMANIAN government has chosen Finnish shipbuilder Rauma Marine Constructions to build two new Spirit vessels, knocking back Hobart-based Incat’s bid.
The decision was made following the Vessel Replacement Taskforce delivering a report, which outlined a preferred course of action for vessel replacement.
Tasmanian Premier Peter Gutwein said the taskforce was established to explore how to give Tasmanian businesses a larger share and more local content supporting local jobs when it comes to the most significant government infrastructure spend of the past decade.
“The report demonstrates there is significant local capacity to play a greater role in the replacement of our ships, outlining three potential options,” Mr Gutwein said.
“The Tasmanian government will move forward largely with option three, which is the purchase of ships from overseas, but with an increased focus on maximising the Tasmanian spend. We believe that two steel monohull vessels are the right approach for the Bass Strait run, but that Tasmania has the capacity to contribute more to the fit out and ongoing maintenance over the life of the vessels in a way that would support hundreds of Tasmanian jobs.”
Premier Gutwein said COVID-19 had meant hard decisions had needed to be taken in the best interests of Tasmania.
“Last year when we decided to halt the process and establish the taskforce, our forecast unemployment rate was 12.5% and our economy was expected to be in reverse at this time. If ever there was a need to explore all options for jobs for Tasmanians, COVID provided it and if faced with similar circumstances again I would do the same thing,” he said.
“We are unapologetic about taking the action required to consider and secure opportunities for Tasmania and to support Tassie jobs.”
Et tu, Gutwein?
In a statement titled “Beware the Ides of March”, Incat acknowledged the government’s decision to engage a Finnish company to build the two new vessels.
“It is fair to say that Incat and its 500 strong workforce are deeply disappointed with the decision, as we were and are confident a Tasmanian vessel, built in Tasmania by Tasmanians would find success on Bass Strait,” the statement reads.
“Such a vessel, operating alongside others in Bass Strait, would bring enormous benefits and opportunities to the whole of Tasmania.
“Incat will take this decision on the chin, and continue our many years of successfully delivering vessels to all other parts of the world.”
Local content
Tasmanian minister for infrastructure and transport Michael Ferguson said TT-Line will work with the shipbuilder over the next 30 days to finalise negotiations on the construction contract with an increased Tasmanian spend to be negotiated, estimated by TT-Line to be between $50 million and $100 million of local content.
“In addition to the anticipated local content associated with the construction of the vessels, TT-Line has indicated there are also other options for local spend by TT-Line in the order of $40 million, associated with the acquisition and commissioning of the new vessels, including using the TT-Line crew as the delivery crew for the vessels,” Mr Ferguson said.
“TT-Line will now negotiate with RMC a target date for the two new vessels to be delivered in 2023 and 2024. In the event that RMC and TT-Line are not able to reach a contractual agreement in the next 30 days, the contract will proceed to open market. However, this of course is not our preferred option.”
Mr Ferguson said the Tasmanian government is also committed to supporting our home-grown and world class shipbuilder, Incat.
“The government will provide support towards ongoing construction at the Incat site while we await the global passenger ferry market to recover. We will discuss with Incat the best way to support local construction work during this time to ensure jobs are maintained and this iconic Tasmanian business is well positioned to grasp global opportunities into the future.”
