Tasmania said it is considering building two replacement ropax ferries at home rather than in Europe in a new environment of nearshoring brought on by the coronavirus pandemic.
In February, TT-Line, the ferry owner controlled by the Australian state, switched its order for two 48,000-gt ropax ferries from troubled German shipbuilder Flensburger Schiffbau-Gesellschaft (FSG) to Finnish shipbuilder Rauma Marine Constructions.
State Premier Peter Gutwein said he was looking to “back Tasmanian and Australian businesses and jobs” by exploring local procurement and manufacturing options for TT-Line’s replacement vessels.
He said it was vital that the Tasmanian government continues to make decisions that “present the greatest opportunity for our local and Australian manufacturers” with global and local economies impacted by Covid-19.
“We have a choice right now to invest around AUD 850m [$600m] offshore in Europe, or to explore all our options in this new post-Covid-19 environment to maximise benefits for Australian and Tasmanian businesses and the people they employ,” he said on Tuesday.
Gutwein said Tasmania was “renowned for its innovation” and that this decision was a “potential game changer for our advanced manufacturing sector”.
Unashamedly, we are going to explore fully the option for this significant investment and the jobs it will underpin to be spent in Australia rather than Europe
Tasmanian state Premier Peter Gutwein
“Unashamedly, we are going to explore fully the option for this significant investment and the jobs it will underpin to be spent in Australia rather than Europe with a particular focus on Tasmanian manufacturers.”
A task force – including representatives from treasury, State Growth, TT-Line and a representative of the federal government – is being established to identify local procurement, purchasing and manufacturing options.
Minister for Infrastructure Michael Ferguson said this will provide Tasmanian and Australian companies a greater opportunity in the construction of new vessels.
“We know the current Spirit of Tasmania vessels are already emissions compliant and can continue to operate safely and efficiently and meet demand well into the future,” he said.
“We will work closely with TT-Line to consider how Tasmania can best maximise the economic and social outcomes both during the build phase and after delivery of the new vessels.”
Despite the bid to have the ships built locally, Ferguson said Tasmania remained committed to building two new ships within its original 2028 time frame.
Robert Clifford, chairman of Tasmanian-based shipbuilder Incat, welcomed the decision by the state to look at local options for building the vessels.
“Incat, as an Australian shipbuilder with over 40 years’ experience delivering vessels to ferry operators from all over the world, enthusiastically looks forward to an opportunity to meet with that task force,” he said.
“With a highly skilled workforce of over 600 people directly employed in Tasmania, and many thousands more supported through subcontract and supplier arrangements throughout the country."
Clifford said Incat was "supportive of keeping Australian dollars within Australia" and maintaining and indeed "growing the employment opportunities for all Australians during these troubled times”.
