Ships Saga - TasFarmers warn of looming supply chain crisis

UPDATED

Tasmania’s peak farmer body, TasFarmers has warned of a looming freight supply chain crisis following today's announcement that the new Spirit of Tasmania vessels will be delayed until 2027.

 "We’re forecasting a market failure in the state’s freight supply chain that will soon place enormous pressure on the agriculture sector and fresh produce exporters,” TasFarmers' President, Ian Sauer said.

"We understand other shipping operators are scheduled to take their vessels out of service for essential maintenance. Without the new, larger Spirit vessels in operation during that time, there will be significant issues for producers."

Mr Sauer said TasFarmers is calling on the Government to develop a solution, stating that if no action is taken, the damage will be real and the impact on the industry will be substantial.

"It's the old mantra: certainty and consistency equal confidence. TT-Line's handling of this situation has not only eroded confidence but has also harmed our state's brand and reputation, which is intolerable and difficult to repair."

Mr Sauer said that the Tasmanian taxpayer expects that TT-Line and TasPort businesses are able to work together to deliver infrastructure projects on time and for the benefit of the state.

"We must have consistent and timely freight services across Bass Strait to strengthen trade relationships, as we are connecting to both national and international markets," Mr Sauer emphasised.

He added that when producers and end customers lose confidence and access to reliable services, it is ultimately the producers who bear the cost. This underscores the necessity for government intervention to provide protection against market failure.

“We must have access to adequate freight services so that farmers can have confidence, especially as we approach a potential market failure by January.”

“Going forward, TasFarmers sees this as an opportunity regarding Government Business Enterprises (GBEs). We want more accountability and transparency from them; otherwise, we risk further market failures.”

EARLIER

PREMIER Jeremy Rockliff has announced that the two new Spirit of Tasmania vessels will not commence operation until February, 2027.

The announcement comes following the Government's receipt of a report from infrastructure experts Ben Moloney and Peter Gemell, in response to revelations that there are no suitable berthing facilities in Devonport for the new Spirits.

"Revised timelines show the new Terminal 3 may not be completed until February 2027 unless risks are appropriately managed or mitigated. By accepting opportunities to accelerate the construction of Berth 3E infrastructure, it is anticipated that the completion date can potentially be brought forward to October 2026, in time for the 2026-27 peak summer period.", Mr Rockliff said.

“This situation we are in is extremely regrettable – but Tasmanians want us to deliver a solution,” the Premier said.

“We have said we will sort the spirits, fix the GBEs and back Tasmania’s tourism industry, and that’s what we are doing today."

Minister for Transport, Eric Abetz, confirmed that the Government was considering leasing out the new Spirits in the intervening years.

“With the first new Spirit of Tasmania vessel due to depart Finland in the coming weeks, TT-Line is now exploring opportunities to lease or charter the vessel during the interim period.

“It is still planned that the vessels will come to Tasmania for finalisation of fit-out.” 

Minister Abetz said that by leasing the vessels, Tasmanians will directly benefit from the financial returns and avoid the need for vessel storage costs. 

Minister Abetz appeared to rule out storing the vessels in Singapore should leasing not eventuate, saying that TT-Line will seek a cost-effective medium-term storage option in Tasmania. If this eventuates, the Tasmanian Government will ensure that TasPorts will not charge TT-Line to store the vessels. 

The Government has also today released a significant tourism and hospitality package that will drive visitation, support our regional communities and boost Tasmania’s economy, including a new voucher scheme, Eat Local, Stay Local, to encourage Tasmanians to travel and eat out.