AN Australian ferry that has been docked in Edinburgh for three months is to be moved back to the other side of the world after leasing negotiations broke down.
Often described as a "fiasco", the Spirit of Tasmania IV has been docked in Leith since early December due to issues with existing infrastructure in the Tasmanian city of Devonport.
State-owned operator TT-Line said it had been engaging with a broker to lease the ferry, however an agreement could not be reached.
The Tasmanian government has now ordered the ferry operator to relocate the 212m-long (695ft) vessel to the island.
"I'm providing advice that is consistent with the government's position, that the government has instructed TT-Line to cease those negotiations and to commence the relocation of Spirit IV to Tasmania," Deputy Premier Guy Barnett said on Sunday.
The ship was built at a yard in Finland, but had to be moved to Scotland before winter over concerns it could be damaged by pack ice.
A new berth to accommodate the ship, and sister vessel Spirit of Tasmania V, may not be ready until late 2026 or 2027 and the saga has sparked a huge political row in Australia.
Spirit IV was originally meant to be transporting passengers and freight across the Bass Strait by last year.
But delays to infrastructure at the port of Devonport mean neither of the two new ferries are expected to operate between Tasmania and Victoria until 2027.
Spirit of Tasmania V is still under construction in Finland.
The cost of building the two LNG dual-fuel ships has risen by A$94m (£47.5m) from A$850m (£430m) when the contract was signed in 2021.
Meanwhile the cost of upgrading current infrastructure in Devonport, which handles about 450,000 passengers a year, has more than quadrupled from an original estimate of A$90m (£45.5m).
TT-Line was paying A$47,534 (£24,031) per week to berth the ship at Forth Ports, according to figures published by the Tasmanian government.
Tasmania's transport minister Eric Abetz said that the government had done all it could to secure a lease that would benefit Tasmanians.
He said: "We had an opportunity to secure an agreement worth tens of millions of dollars for the Tasmanian taxpayer, and it would have been economically irresponsible not to explore this.
"Previous similar leases provided more than €50m (£41.2m) to vessel owners, and it was prudent that we sought similar arrangements for Tasmanian taxpayers.
"The relentless negativity is hurting the state's economic opportunities, and it's time to move forward together."
