27 February 2020
The Flensburger Schiffbau-Gesellschaft (FSG) shipyard will not build TT-Line Company Pty Ltd’s new Spirit of Tasmania vessels.
Chairman Michael Grainger said the decision was mutually agreed by TT-Line and FSG.
“While we respect there has been significant Tasmanian community interest, it was imperative the company followed its legal advice to protect the interests of the state of Tasmania at all times,” he said.
“The firm advice was that neither TT-Line nor the Government could make public comment regarding the contract details or the status of ongoing conversations with FSG until now.
“It was critical that we protected the interests of the State of Tasmania at all times.
“No payments to FSG have been made, and no payments will be made.”
Mr Grainger said TT-Line had been in contact with another shipbuilder, the Finnish Rauma Marine Constructions (RMC).
“RMC was one of the yards originally short-listed through the extensive procurement process undertaken,” he said.
“Since the cancellation of the contracts with FSG, TT-Line has signed a Memorandum of Understanding with the RMC and will commence contract negotiations and agree final design specifications.
“This will include finalising a new delivery date, which at the moment is late 2022 for hull 1 and late 2023 for hull 2. Both delivery dates are well within the expected replacement date of 2028.”
“Importantly, the current Spirit of Tasmania vessels are already emissions compliant as was required by 2020 and can continue to operate safely and efficiently well past 2021.”
Mr Grainger said the majority of the work undertaken to date on the new vessels by TT-Line and their expert consultants was transferrable and would be utilised in the detailed design phase and contract negotiations with the new shipbuilder.