Spirit of Tasmania operator sent wrong fender specs, leading to $9 million ferry fix

Photo: ABC News: Ebony ten Broeke

TT-Line says "human error" is to blame for the latest hit to the project, which has seen the ferry operator fork out $9 million for hull strengthening and fender rebuild. 

On the same day as the details of the ship and berth modifications were announced, the Tasmanian government released new images of the yet-to-be-completed Devonport berth infrastructure. 

What's next? 
TT-Line will be given a $75 million equity contribution in next week's state budget, with the company saying it will help it navigate "medium-term" financial issues.The head of Tasmania's state-owned ferry operator has blamed "human error" which has resulted in modifications to the two new Spirit of Tasmania ships and their berth being needed.Last month, TT-Line revealed the project's "recovery team", which was introduced following major delays and cost blowouts to the vessel replacement project, had identified an issue with the new fenders at the berth, caused by the "wrong specifications" being acted on. The fenders sit between the vessel and the port to absorb kinetic energy. TT-Line has now identified that the fenders were built "much stronger than required", following a change to the specifications. 

The ABC understands that a recent safety assessment found the interim berth would need two additional bollards for the ship to dock there at a cost of $2 million, an option which may not go ahead.To solve the issue, which could have caused a problem during extreme weather events, the company has elected to rebuild the fenders and weld extra steel to the inside of each ship's hull where it meets the fenders. Mr Kanofski said the approximate cost of the works would be $9 million, which would come from the project's contingency buffer.It is the latest chapter in the bungled Spirit replacement program that has seen several management figures at the ferry operator, and port operator TasPorts, depart their posts. 

The rollout of SPIRIT IV and its sister ship SPIRIT OF TASMANIA V has been plagued by construction problems, cost overruns and extensive delays. 

Money for Spirit in upcoming state budget 
Infrastructure and Transport Minister Kerry Vincent also announced today TT-Line would be given a $75 million equity contribution at next week's state budget, to help it maintain a "strong financial position" going forward. In July, the company's borrowing limit was raised from to $1.035 billion to $1.445 billion. TT line is unable to sell its current fleet of two ships as they are required for service until the specific berthing infrastructure for the new vessels is completed, which is expected to be later next year.

The fit-outs for the new Spirit ferries were initially pledged to include up to $100 million in "Tasmanian local content", but the state government says that now includes Australia-wide businesses and big multinationals.

New TT-Line Chairman Mr Ken Kanofski said the $75 million increase dealt with TT-Line's "medium-term issues", and was a "buffer" to ensure the company did not hit its new higher borrowing limit while it completes the berth project."We didn't think we would hit the $1.4 billion [mark] but we think we'd get closer to it than we were comfortable with, and therefore the government is injecting $75 million," he said."Now we are turning our attention to the long-term future of the business and what are the options for operating this business in the long term in a financially sustainable way."Mr Kanofski said TT-Line had requested $100 million from the state government, but Minister Vincent did not explain why the company had only been given $75 million."I don't get involved in the Treasury things. I sit there as the minister responsible, understanding it as we go through it," he said.

The state government said Treasury would work with the board "in the event that the additional $25 million is required Labor's Treasury spokesperson Dean Winter said the government had finally admitted to giving TT-Line a "bailout" after "brushing off" concerns."In a blatant attempt to get all their bad news out the door at once, the government also revealed that the 'very minor' hull and wharf upgrades the new ships require before even entering service will cost $9 million," he said."The bill from the biggest infrastructure stuff-up in Tasmanian history keeps growing and it's Tasmanians who are paying the price for incompetence."

Source : ABCNews   Josh Duggan