Mr BAYLEY - Coming back to Wharf 6 and servicing Antarctic customers, have you guaranteed wharf space for Australia's other polar partner nations? The French? Other nations have regularly visited and used Hobart in some sense as a home port. Have you got any guarantees there or what can we expect going forward there?
Mr DONALD - We certainly are encouraging and to work with State Growth in particular to demonstrate the benefits for the state and the service, offering the collective Antarctic community can provide to support other visiting nations. We are very proactive in this space but, as you say guarantees, do we have any contracts? No. That would be unusual for another Antarctic nation to commit in contract.
Mr BAYLEY - But can we expect them nonetheless?
Mr BRADFORD - Berths 4, 5, 6 are at the end of their useful life and require significant upgrading and Mr O'Byrne touched on that. The corporation is working towards a major capital development at 4, 5, 6 with berth 6 being dedicated for AAD as an achor tenant with a thirty-year contract for their exclusive use and as part of that project, we wish to develop 4 and 5 as well. Some of the clients of that will be visiting nations to the Antarctic.
Mr BAYLEY - When it comes to the timber, the whole log export ships that use those facilities as well, has there been any change in arrangements or any guarantees there in relation to precedence or their relationship when it comes to Antarctic vessels that are expecting or needing to berth there?
Mr DONALD - Other than they know that certainly the customers that have frequented the set operations, so, the southern export terminal, that there is a high degree of obligation on them to manage bark and dust. And that's from, I suppose, the biosecurity perspective with relation to AAD but also to cruise ships.
Mr BAYLEY - Have there been any issues in that regard over the last year or two, bark and dust? Have you had to issue any notices or ask for -
Mr DONALD - No, unfortunately there hasn't been much volume of logs moving through Hobart.
Mr BAYLEY - Coming back to the upgrades, I know there was an extensive conversation there, but in terms of time lines and what you're working towards, what are your aspirations in that space, understanding of course, that there is federal implications and challenges at the moment? What are your hopes and aspirations in that regard?
Mr BRADFORD - It's very much in the hands of AAD and our national government and their budget process. But we've already done a lot of preliminary work but I'm hopeful of seeking the minister's approval very early in 2024 to the whole project.
Mr BAYLEY - While we're on the subject of money, clearly you're expecting and needing additional assistance from the federal government, but it -
Mr BRADFORD - No.
Mr BAYLEY - You're not?
Mr BRADFORD - No, we want AAD to pay a monthly charge for berth 6.
Mr BAYLEY - For the upgrades?
Mr BRADFORD - As a user.
Mr BAYLEY - And the $200 million to $300 million - how do you propose to fund that?
Mr BRADFORD - We will raise the debt and build the wharf and users will pay for it with AAD as an anchor tenant.
Mr BAYLEY - Right, but you'll raise it by talking to the federal government as well? No?
Mr DONALD - No, that will be a debt-funded project that, subject to the approval of the Treasurer, we will then move through a process with TASCORP to borrow the money.
Mr BAYLEY - The federal government has made a commitment, though, to wharf infrastructure as part of its $240 million contribution to the Macquarie Point redevelopment site - urban renewal precinct.
Mr DONALD - As I understand it, and as disclosed in the Senate inquiry the commitment from the federal government is to enter into commercial arrangements with TasPorts for the upgrade of wharf 6, for the provision of a dedicated facility.
Mr BAYLEY - Over and above that $240 million. Are you relying on any of that $240 million for your operations?
Mr DONALD - No.
Mr BAYLEY - I'm struggling to understand. On the one hand you say you want to debt-fund it and will talk to TASCORP and the Treasurer. On the other you're not going to be talking to the federal government, you don't need any contribution from the federal government and you don't expect any contribution from that $240 million.
Mr BRADFORD - No. We expect AAD to be an anchor tenant. We expect the cruise industry will willingly and very keenly go to berths 4 and 5.
Mr FERGUSON - Just to be clear, that helps explain the previous answers we've provided, which is that the AAD is part of the Australian Government's budget process.
Mr BAYLEY - I see. That is complicating those negotiations in that it's not simple berthing fees. There's an element of those berthing fees that are going to recover that capital investment, ultimately.
Mr BRADFORD - As a long-term tenant.
Mr BAYLEY - When are you hoping to finalise those negotiations?
Mr BRADFORD - As soon as the AAD has a budget.
Mr FERGUSON - I want to say - and I feel comfortable saying it - I want the committee to feel a high level of comfort that the negotiations are progressing very positively between TasPorts and the AAD.
