The state will receive two new Spirit of Tasmania vessels in 2021 – two years ahead of schedule.
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The vessels will be 30-per-cent bigger than the current ships.
Passenger capacity will be increased by 43 per cent and freight capacity by 39 percent.
Premier Will Hodgman said the new ships would be able to bring 500 additional visitors, 115 additional passenger vehicles, and 85 additional freight trailers
Infrastructure Minister Rene Hidding said a contract with an international builder was expected to be signed during the first six months of 2018.
“While it is unfortunate that there are no Australian shipyards with the capacity to build the new Spirits, we will ensure Tasmanian products are used in the fit-out,” he said.