The operator of the Spirit of Tasmania, TT-Line, is hoping it can secure a lease or charter for the first of its new ships during the first month that its being stored in Edinburgh, Scotland.
But it is yet to formally appoint a broker to handle the negotiations, early advice has indicated there is "not a strong likelihood" of finding an appropriate lease, and a large operator has already ruled out leasing it.
A three-month lease in New Zealand has also been ruled out by TT-Line, because it would take it away from the European market.
Running a service between Sydney and Geelong was also "seriously considered".
Spirit of Tasmania IV arrived for storage at the Port of Leith on Tuesday, at a cost of $47,534 per week, not including fuel for the constantly-running ship, staff wages and provisions for six permanent crew, or maintenance costs.
Finding a lease for the ship — while berth infrastructure is completed in Devonport by early 2027 — is the preferred option of the Tasmanian government.
TT-Line appeared at a government business scrutiny hearing on Thursday, which included updates on leasing negotiations.
Interim chair Damian Bugg KC said conversations with a first broker had highlighted some challenges for leasing the vessel, but this person had only "limited coverage".
"On what we had to date from that broker, I would have to say not a strong likelihood," he said.
"At the time we made the inquiry, we were not in a position to provide an open commitment to have that person market what we were available to market.
"It's an initial inquiry. What's the market like, are we really wasting our time? No, we're not. Let's take it to Leith and let's do it properly."
Representatives from a large operator inspected Spirit of Tasmania IV prior to it leaving shipyards in Rauma, Finland, where it had been built.
Mr Bugg said the company ultimately chose not to lease it, but the level of interest at that stage was encouraging for TT-Line.
It's still unclear what level of interest exists in the European market.
Spirit of Tasmania IV was built in Rauma, Finland. (Supplied)
Geelong-to-Sydney, New Zealand lease floated
While TT-Line sees the Northern Hemisphere as its best chance of finding a lease, it has received interest from closer to Australia.
Mr Bugg said a short-term proposal was received from New Zealand.
"New Zealand were interested for a short-term charter while they took a vessel to Singapore for dry docking," he said.
"All up we were looking at about three months, I think … which was really not attractive to bring it all the way from the Northern Hemisphere for a three-month charter."
A company in New Zealand was also proposing a multi-billion-dollar wharf construction and vessel replacement project, which could have allowed for the Spirit vessel to be chartered, but the New Zealand government has since withdrawn its support for it.
New wharf infrastructure was built for the Spirit of Tasmania at Geelong — as part of the transition away from using Melbourne — and Mr Bugg said they had considered utilising this for a new service.
"One of the things that has seriously been considered is whether we can take a passenger voyage from Geelong, is there somewhere in Sydney we could take it?" he said.
"Is there a market for it? Do Victorians want to go to New South Wales?
"We've got to explore everything … it's not something you do lightly."
Warranty and legal issues considered in leasing options
TT-Line has a 12-month warranty for Spirit of Tasmania IV, but while it is being stored in Leith, operational issues might go undetected.
Leasing it might also have warranty and legal ramifications.
TT-Line is looking into three types of lease arrangements: a time charter in which TT-Line maintains control of maintenance while someone else uses it, a voyage charter where it is leased for a specific voyage, or a bareboat charter which grants the user ownership rights for a set period.
Loading...The bareboat option might be the most attractive for lessees, but Mr Bugg said it carried the most risk.
"The issue for us is what is the effect of a bareboat lease where we don't have someone on board overseeing the operation and management of the vessel on our warranty and our insurance?" he told the hearing.
"We are seeking advice about that."
The TT-Line board this week decided to "explore a range of brokers" to get a broader indication of leasing options in the Northern Hemisphere.
Mr Bugg said if there were no viable options, the vessel would be brought to Tasmania.
"We have got to explore ways and means for achieving some return to the company of what is a valuable asset," he said.
"We will explore these other [options] and we'll talk about it. We won't put it in an envelope and bury it.
"We will say, look, we explored it, it's not feasible, it's not possible, therefore it's coming to Tasmania and we will try to do something with it here."
A floating political billboard
Labor leader Dean Winter maintains that the vessel should be brought to Tasmania.
Mr Bugg said he would also "love" to have the ship in Tasmania, but it would cost millions of dollars to sail it from Europe to Australia, which would then take it away from possible markets.
When asked about whether Tasmanian ports were considered for storage, he said this could open up TT-Line to additional criticism if things went badly.
Helen Burnet (Greens): What ports were considered in Tasmania? And why is it over in Europe?
Mr Bugg: If we brought it to Tasmania and there was no market and it was sitting there, the member on your right [Dean Winter] would be on the front page of the Mercury every day, saying it's a disgrace that this vessel is sitting here when it could be rented out.
Dean Winter (Labor): Is that why? Is that the reason?
Mr Bugg: No, because I'm the chair of a company that has a business operation to run. And If I have got an asset in the company that is not earning income, I deserve to be criticised, so I have got to find a way for it to earn income.
Spirit of Tasmania V remains under construction in Rauma, Finland, and is expected to be complete in the first half of next year.
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