Australian Ferry to be Stored in Edinburgh Amid Infrastructure Delays and Cost Overruns

A large, recently completed vessel is scheduled for temporary storage in Edinburgh, stemming from a “ferries fiasco” in Australia. The Spirit of Tasmania IV, measuring 212m (695ft) in length, will be kept at the Port of Leith. This is because its size prevents it from fitting the current berths in Devonport, Australia. Constructed at a Finnish shipyard, the ferry must depart before winter to avoid potential damage from pack ice. The new berth in Tasmania, designed to accommodate the ship, is not expected to be operational until late 2026 or 2027. Both this vessel and its sister ship, Spirit of Tasmania V, which remains under construction, were initially hailed as a “game changer” for Tasmania’s tourism sector. However, issues such as construction delays, escalating expenses, and difficulties in modernizing existing infrastructure have transformed the project into the state’s most significant political controversy in ten years. Australian news outlets have characterized the situation as a “fiasco” and “debacle,” with opposition leader Dean Winter labeling it the “biggest infrastructure stuff-up” in the state’s history. The construction cost for the two LNG dual-fuel vessels has increased by A$94m (£47.5m), rising from the A$850m (£430m) agreed upon when the contract was signed in 2021. Concurrently, port upgrade expenses, initially projected at A$90m (£45.5m), have more than quadrupled. Both the ferry operator TT-Line and the ports company TasPorts are government-owned entities. In August, infrastructure minister Michael Ferguson and TT-Line chairman Mike Grainger both stepped down from their positions. It has recently come to light that the Devonport berth, which was expected to be finished by this time, will not be completed before October 2026 at the earliest. Bernard Dwyer, TT-Line chief executive, stated that due to anticipated pack ice in Rauma, the Finnish shipyard town, in late November, relocating Spirit of Tasmania IV was crucial. He explained, “To ensure the vessel’s safety and preservation, we will temporarily relocate it to Leith, Scotland, where conditions are more suitable.” He added, “This move is necessary, as the vessel is not designed for the extremely low ambient temperatures anticipated in Rauma.” Dwyer also mentioned that the company is exploring the possibility of leasing out the vessel. However, it is understood that additional work would be necessary before such an arrangement could proceed, as the initial construction agreement stipulated that some final fitting out was to be completed in Australia. Given the dimensions of these ships, their deployment in Scotland is improbable, even though the west coast ferry operator CalMac is in urgent need of new vessels. This situation bears several resemblances to Scotland’s own “ferries fiasco,” where the state-owned ferries company CMAL commissioned ships that were too large for existing infrastructure. The LNG dual-fuel vessels Glen Sannox and Glen Rosa, currently under construction at Ferguson shipyard in Port Glasgow, are intended for the Ardrossan to Arran route but cannot utilize the mainland port due to delays in a planned redevelopment. In 2018, then-Transport Minister Humza Yousaf announced the Ardrossan upgrade. However, a stalemate regarding costs among its private owner Peel Ports, the local council, and the Scottish government means that no timeline for the work has been established. Consequently, Glen Sannox and Glen Rosa will initially operate from Troon, resulting in a 20-minute longer journey, fewer daily sailings, and a lack of dedicated fast refuelling facilities for the LNG.