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Tasmania Injects $506 Million Into TT-Line to Cover Ferry Project Overruns

The equity aims to reduce TT-Line’s debt to a serviceable level.

Overview

  • The state government will tip $506 million into state-owned TT-Line, with $200 million in the 2026–27 budget and the balance in later years.
  • Ministers said the cash covers past capital cost overruns rather than new spending on the ferry and terminal program.
  • TT-Line’s chair told a parliamentary inquiry the project has blown out by about $717 million, including an extra $403 million for the Devonport terminal.
  • Two new Spirit of Tasmania ferries are complete but remain in Port Phillip Bay until the Devonport terminal is finished, with service targeted for late October.
  • Company modelling shows the equity trims projected debt from about $1.4 billion to roughly $950 million, following last year’s $75 million injection and a higher borrowing cap.