TT-Line is finally set to sign a contract with Rauma Marine Constructions for the replacement of the Spirit of Tasmania vessels.
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Premier Peter Gutwein on Wednesday announced negotiations between the TT-Line board and the Finnish shipbuilder had resulted in the inclusion of up to $100 million of local content in the build.
"That means that Tasmanian businesses will be able to tender and bid for work on those two new boats," he said.
Mr Gutwein said the first of the two vessels would arrive in the state in late 2023 and the second one a year later.
He said the price of the two new vessels was expected to be $855 million which was $30 million lower than the anticipated cost last year.
The government decided to ignore TT-Line advice last year to sign a contract with RMC to build the new Spirits as the state and country grappled with the coronavirus pandemic and its economic impacts.
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It set up a taskforce to investigate how to get the project completed domestically.
In the end, the government adopted a taskforce recommendation to get RMC to do the job and announced it would negotiate for more local content to be used in the construction of the ships.
Mr Gutwein also a re-elected Liberal government would make a $240 million investment into the port of Devonport.
He said the port redevelopment would enable more container freight capacity and an upgrade to the Spirit of Tasmania terminal to accommodate the new vessels.
"It is expected that this investment alone will generate around 1700 jobs over the course of the next four to five years as this port redevelopment takes place," Mr Gutwein said.
He said the business case has been finalised so work on the port upgrades was ready to begin on June 1.
Mr Gutwein also announced a $145 million proposed redevelopment for Burnie's port to allow increased capacity for larger vessels to berth.
He said the first stage of the redevelopment would involve dredging works followed by investment into terminal infrastructure.
Mr Gutwein said this development would generate about 1000 jobs.
Labor's infrastructure spokesman Shane Broad said if the government had signed the contract for the new Spirits nine months ago, the first ship would be in the state this year.
"Instead we have another two-year delay," he said.
"Peter Gutwein's dithering has cost just the tourism industry hundreds of millions of dollars."
Devonport mayor Annette Rockliff said the community would welcome the ports upgrade as well as an announcement on vessel replacements after there had been some dismay last year when the project was paused.
She said the time frame for the arrival of the new vessels was about what was anticipated before the delay to signing on with RMC.
Tourism Industry Council Tasmania chief executive Luke Martin said the announcement on the Spirits would lift the cloud of uncertainty over the past six month.
He said the time frame for the new ships for the 2024 visitor season would boost industry confidence.
"The reality is we would love to have these ships on the route right now, so the sooner they arrive the better," Mr Martin said.
"I think it's easy to point the finger at the government about the process it went through, but at the end of the day we're getting the ships we need in two years and with a significant increase in the Tasmanian procurement."
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