Tasmanian state-owned ferry operator TT-Line’s order for two large, fast ropaxes at Germany’s Flensburger Schiffbau-Gesellschaft (FSG) is dead in the water.
After months of speculation the Tasmanian governments ‘s Infrastructure Minister Michael Ferguson has announced that TT-Line and FSG have mutually agreed to cancel the contract for the two 48,000-gt ropax ferries that were scheduled for delivery in 2021.
Ferguson said a memorandum of understanding has been signed between TT-Line and Finnish shipbuilder Rauma Marine Constructions with target dates of late 2022 for the first ship and late 2023 for the second.
He said that FSG’s delays in the building of other ships, and uncertainty over the yards finances, made it appear increasingly unlikely TT-Line’s newbuildings could be delivered on time.
Ferguson stressed that no payments to FSG have been made, and no payments will be made.
"The majority of the work undertaken to date on the new vessels by TT-Line and their expert consultants is transferable and can be utilized in the detailed design phase and contract negotiations with the new shipbuilder," he said.
TT-Line’s FSG order was contracted at €219m per ship. No revised pricing estimates were given for the Rauma Marine orders, although this will likely be revealed when the contract has been finalized.
TT-Line will continue to operate its two existing 29,300-gt, 1998-built ropaxes until its new ships are delivered.
The contract cancellation comes as a major blow for FSG, which has struggled over the past couple of years to complete ships on time. It blamed management issues, a lack of performance by subcontractors and an absence of building finance as the main causes of its woes.
