Up to $100M local content secured in TT-Line agreement


The Tasmanian Government’s bold and decisive action has secured Tasmanian businesses an increased share of the most significant Government infrastructure spend in the past decade - and at the top end of the value condition we set.

In an outstanding boost for our economy, jobs and the North West, TT-Line has recommended the Government provide approval for the signing of a contract with Rauma Marine Constructions (RMC) for the replacement of the two Bass Strait ferries.

The contract will include up to $100 million of local content and will mean the two vessels will be delivered years ahead of the 2028 replacement deadline.

Premier Peter Gutwein said the agreement will secure two fit-for-purpose vessels and a substantial increase in local content during construction and ongoing fuel and maintenance.

“This will mean that Tasmanian businesses will now be able to participate in the supply of local goods and services like furniture, carpets, catering equipment and galley, pantries, fire doors, steel doors, machinery including water pumps, expansion tanks, diesel engine equipment, compressors, bilge pumps, platforms and railings, sprinklers and heating systems, as well as CCTV and communications systems.

“In total, there are hundreds of local supply items that Tasmanian businesses will be able to bid for.

“TT line will work with the Tasmanian Maritime Network and the Department of State Growth to ensure that Tasmanian businesses are coordinated and supported to achieve the best possible outcome in supplying local content.

“Importantly, penalty provisions are included in the contract in the event these local content provisions are not satisfied.

“We have not wavered in our commitment to get Tasmanians a better share of this historic infrastructure spend and we’ve delivered far beyond the earlier Memorandum of Understanding which provided for around $16 million of local content,” Mr Gutwein said.

The Minister for Infrastructure and Transport, Michael Ferguson said the TT-Line Board had advised that the final contract price in Australian dollars will only be confirmed once the foreign exchange contracts have been executed.

“However, it’s likely that at current exchange rates the contract price for the two vessels will be very similar, or potentially even less than the previously negotiated price pre-COVID despite some increases in material costs like steel.

“As well as the significant increase in local spend during construction, all annual maintenance will be managed from Tasmania, resulting in an increased spend of $90 million over the 30 year life of the new vessels.

“Fuel will also be purchased in Tasmania, with a $60 million per annum spend, supporting jobs here in Tasmania,” Mr Ferguson said.

Importantly the new contract provides for the vessels to be delivered in late 2023 and late 2024.

This will come as a huge confidence boost to Tasmanians, especially North West Coast businesses.

We are unapologetic about taking the action required to secure Tasmania’s future and Tasmanian jobs.