Ferry dispute escalates: Sealink takes legal action over delayed Kangaroo Island ferry

Sealink, the operator of the Kangaroo Island Ferry, has launched legal action against Sea Transport SA Pty Ltd, the company contracted to supply the second of two new ferries, seeking orders that it be delivered. The move comes as the company prepares for the introduction of the new ferries, with the Cape Jervis and Penneshaw terminals set to be shutdown for three days from October 20.

Background to the dispute

Sealink has a contract with the state government to provide ferry services to Kangaroo Island until at least 2039. Two larger ferries providing 150 metres of additional vehicle space were contracted to be built in a shipyard in Batam, Indonesia and were initially expected to be in service by early 2025. However, after a series of delays, the first of the new ferries arrived in Port Adelaide in April 2026.

The second of the new ferries, named Ruwi, is still in a shipyard in Batam, Indonesia. In a media statement published yesterday, Sealink said it had commenced proceedings in the Federal Court admiralty jurisdiction against Sea Transport SA Pty Ltd, seeking orders that it be delivered.

Sea Transport founder and chairman Stuart Ballantyne said he was limited in what he could say.

"Sealink basically cancelled the contract when we were about 99 per cent of the point of getting it out of the shipyard and starting the delivery to Adelaide, which surprised us," he said.

"But they've taken it legal and when you cancel a contract, we've just had to bow back and wait for the legal people to sort it out."

"When somebody decides to sue you, that's their choice," he said.

Impact on ferry services

The first of the ferries currently berthed in Port Adelaide will commence service later this month, although in conjunction with one of the old ferries. To allow this to happen, all ferry services will be halted for three days next week so new vehicle ramps can be installed at the terminals at Cape Jervis and Penneshaw.

The Sealion will remain in service and operate with the first of the new ferries until the second one is in place. One of the old ferries will then resume a limited service for the next three to four days while the new ferry undergoes testing and staff training is carried out.

The new and old ferry will then continue to run together until the second of the new ferries is delivered.

Reaction from stakeholders

Agriculture Kangaroo Island chair Peter Cooper said the shutdown and changeover would be disruptive to the island's farmers but "had to happen at some time".

Producers are currently moving large volumes of lambs, grain and other crops to the mainland for sale. Mr Cooper said discussions with Sealink had taken place and they had agreed to "additional freight runs" to clear any backlog after next week's shutdown.

Kangaroo Island Mayor Michael Pengilly said the ferry was a lifeline for islanders and it was peak livestock season for farmers.

"If they end up only having one boat running for a while, I'd like to see it running 24 hours a day if necessary," he said.

SA Transport Minister Joe Szakacs said Sealink had now failed to reach a number of deadlines and the company had "severely let down" islanders and the government.

He called on the company to "do better" and said it had agreed to immediately implement vehicle fare reductions for Kangaroo Islanders that had been promised once both ferries were in place.

The matter between Sealink SA Ferry Services SA and Sea Transport SA Pty Ltd is due to return to the Federal Court on November 13.