State Infrastructure Minister Rene Hidding said he expected the new Toll ships, which will be ready in late 2018, to boost total Bass Strait freight capacity by 20 per cent.

Toll said its new ships would provide more opportunities to transport refrigerated freight for the state’s growing chilled export market and more flexibility for customer deliveries.

“This significant investment underscores Toll’s commitment to the Australian market and the integral role that we play in connecting Tasmania to our vast global network,” Toll Group managing director  Brian Kruger said.

Toll said it had secured an extra 7 hectares of land at the Port of Melbourne to cater for  land-side infrastructure to support its increased freight capacity.

The company  said the ship contract had gone to the Jinling Shipyard after a competitive tender process.