FERRY terminal upgrades on the bay islands are about to enter the next phase, but project costs have increased by $7.6 million in less than a year.
The state government and Redland City Council will now spend a combined $44.6 million on the project, up from the $37 million announced in May 2021.
Transport Minister Mark Bailey said various factors had contributed to the rise, including the current infrastructure boom and pandemic supply chain issues.
"Anyone who is building a house or renovating right now can understand the challenges in keeping costs down, which is something every government is grappling with because of the pandemic," he said.
"We've seen other states delay projects because of this, but that's not something we're prepared to do due to the need for this important transport infrastructure in the Southern Moreton Bay Island community.
"The Palaszczuk Government is committed to this project, it has been difficult getting funding out of the council, and we've ended up having to chip in more than our fair share."
A contract has been awarded to Sunshine Coast company The Jetty Specialist for stage two, which will allow landside and marine construction works to start.
Redlands MP Kim Richards said on-site work would begin at Macleay Island soon, with Thornlands company Aluminium Marine to complete the final fit-out for ferry terminal components.
"The project will also include repurposing the existing ferry pontoons and jetties for recreational use, such as fishing and mooring," she said.
Mayor Karen Williams said the project was one of the largest capital investments on the bay islands and one of the city's most significant infrastructure projects.
"The delivery of new ferry terminals across the Southern Moreton Bay Islands will make it easier and safer for the community to get to and from work and access critical community services," she said.
Overall work on the four terminals is due for completion in mid-2023, while Russell Island is scheduled to be finished by late this year, weather permitting.
The upgrades promise several improvements, such as more undercover waiting areas, extra seating and improved security.
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