Tasmanian Government presses ahead with direct freight service to Asia, despite industry preferring subsidised Melbourne route.
The Tasmanian Government has announced that Singapore-based Swire Shipping will provide a renewed international shipping service between the two island states. That’s despite most Tasmanian exporters preferring to send their freight via Melbourne.
Infrastructure Minister Rene Hidding says the company and Government will sign a memorandum of understanding in the near future. That will express a commitment by Swire for a regular freight shipping service from the Bell Bay port, just north of Launceston.
“The government has been working since day one to deliver on our commitment to re-establish an international shipping service for Tasmania as a key part of our long-term plan to grow our economy and create jobs,” he says.
“Tasmania cannot afford to stand around waiting, and that’s why we are getting on with the job of working with industry to facilitate the establishment of a viable, sustainable international shipping service.”
But Tasmanian exporters have urged the Government to continue supporting existing arrangements that subsidise international freight delivered via Melbourne.
The Tasmanian Logistics Committee, the Tasmanian Farmers and Graziers Association, the Tasmanian Minerals and Energy Council, the Forest Industries Association of Tasmania and the Tasmanian Industry Group have issued a joint call for an extension to the freight equalisation strategy that provides a subsidy to freight movements across Bass Strait with the aim of nullifying the more expensive sea passage.
Hidding says the future of that scheme is in doubt, forcing Tasmania to consider alternative strategies for creating and developing export opportunities.
“While the Tasmanian Government supports an extension to the federally-funded Tasmanian Freight Equalisation Scheme, the Australian Government has clearly indicated that any changes must fit within the current funding envelope,” he says.
“Any change on this basis threatens the vitally important Bass Strait shipping market and is, therefore, not acceptable.