New Spirit of Tasmania terminal costs rise as completion date is brought forward

The cost of the terminal for the new Spirit of Tasmania vessels has increased by almost 25 per cent, but it will be completed four months earlier than expected.

Originally budgeted at $90 million, the construction of Berth 3 at the Port of Devonport escalated to $375 million.

However, that cost has now increased by an additional $118 million to $493 million, the government has revealed.

Berth 3 was initially scheduled for completion by February 2027, but the completion date has been brought forward to October 2025.

Premier Jeremy Rockliff said the news of the completion date being moved forward was “welcome news for all Tasmanians”, despite the cost blowout.

“We said we would fix the spirits, and that’s exactly what we have done,” Mr Rockliff said.

“I want to thank the new Chair, Mr Ken Kanofski, and project director, Mr Paul Kirkwood, for their hard work and dedication to getting this project on track.

“We also have many contractors on site, working tirelessly to pull out all stops to get this project delivered as quickly as possible, and I thank them for their work.”

On Friday, Transport Minister Eric Abetz informed the Public Accounts Committee of the new contract signed between the Spirit of Tasmania operator, TT-Line, and BMD.

“The Government is pleased that the vessels will be able to start operating earlier to support growth in our economy and tourism sector," Mr Abetz said. 

“The new contract, which contributes to a revised formal project cost estimate of $493 million, determines a way forward that will deliver faster timelines and improved project management.

“The Government is confident it now has the right people and robust project governance, discipline and controls in place.”

Mr Abetz also said the Spirit of Tasmania IV is expected to depart from Leith in Scotland on or around May 26.

It is expected that the vessel will arrive in Hobart in mid-July, where the final fit-out will occur.

A berthing location for the Spirit of Tasmania IV once these works are complete has not been determined.