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Category: Sea Transport / Federal - State Issues

Bass Strait ferry plan aims for two new ships in 10 years' time

Saturday, 21 May 2016 08:29:29 | Laura Beavis

The plan to replace the ferries calls for the operator to pay two special dividends. (ABC News: David Hudspeth)

The Tasmanian Government will call in two special dividends of $40 million from TT-Line in the next two financial years to help fund new Bass Strait ferries.

Key points:

  • Government confident TT-Line can afford ship-funding dividends
  • Ferries fund expected to benefit from any state budget improvements
  • Plan to buy new ships within the next decade

The $80 million from the ferry operator will be put into a dedicated ship fund to be spent in about a decade.

Laws will be passed to ensure the funds can only be used to replace the two refurbished Spirit of Tasmania ferries.

Last year's annual report from TT-Line stated the Spirit of Tasmania ferries were valued at €62 million ($96 million) each.

They are valued in euros as Europe is the primary market for this kind of ship.

Minister for Infrastructure Rene Hidding said further contributions were expected to be made to the fund in future years as the budget situation and TT-Line's cash position allowed.

"Even after the initial contribution of $80 million to the Ship Replacement Fund, TT-Line will still have significant cash reserves," he said.

He cited the Government's policy of investing in ferry refurbishment, increased day sailings and reduced fares, as having allowed the TT-Line to generate money that would be used to fund ferry replacements.

AustraliaPlus


 

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