SWIRE Shipping says the imminent arrival of an international competitor into Tasmanian waters has not dissuaded the company from investigating establishing a direct service of its own. The Mediterranean Shipping Company announced on Monday that it would be offering Tasmanian customers a fortnightly international shipping service out of Bell Bay, linking the Northern port with mainland ports, Noumea and New Zealand. MSC said it was confident Tasmanian exporters and importers would support its new service when it started late next month. The company's announcement prompted some industry leaders to question whether there was sufficient space in the market for two international shippers. But Swire Australian manager Brodie Stevens said that while it was too early to comment on a potential carve-up of market share, the two prospective offerings were vastly different. "While MSC is trans-Tasman focused what we're considering is a direct Tasmania to Asia service for containerised freight," Mr Stevens said. "It's still very much a work in progress but we're excited about the potential." The state government has offered Swire $33 million if it can make the service viable. MSC is funding its own foray into the Tasmanian market, but Infrastructure Minister Rene Hidding said this would have no bearing on the public funding on offer for Swire. "The MSC service, while adding welcome competition and choice, won't change that," Mr Hidding said. Tasmanian Greens leader Kim Booth urged the government to reconsider. "It's great news that a private operator is going to pay their own way," Mr Booth said. "But it does raise the issue of whether it's appropriate to subsidise a competitor." Tasmanian Farmers and Graziers Association chief executive Jan Davis said MSC's offering would give some exporters an opportunity to break a monopoly enjoyed by the Port of Melbourne on products in and out of Tasmania.
SWIRE Shipping says the imminent arrival of an international competitor into Tasmanian waters has not dissuaded the company from investigating establishing a direct service of its own.
The Mediterranean Shipping Company announced on Monday that it would be offering Tasmanian customers a fortnightly international shipping service out of Bell Bay, linking the Northern port with mainland ports, Noumea and New Zealand.
MSC said it was confident Tasmanian exporters and importers would support its new service when it started late next month.
The company's announcement prompted some industry leaders to question whether there was sufficient space in the market for two international shippers.
But Swire Australian manager Brodie Stevens said that while it was too early to comment on a potential carve-up of market share, the two prospective offerings were vastly different.
"While MSC is trans-Tasman focused what we're considering is a direct Tasmania to Asia service for containerised freight," Mr Stevens said.
"It's still very much a work in progress but we're excited about the potential."
The state government has offered Swire $33 million if it can make the service viable.
MSC is funding its own foray into the Tasmanian market, but Infrastructure Minister Rene Hidding said this would have no bearing on the public funding on offer for Swire.
"The MSC service, while adding welcome competition and choice, won't change that," Mr Hidding said.
Tasmanian Greens leader Kim Booth urged the government to reconsider.
"It's great news that a private operator is going to pay their own way," Mr Booth said.
"But it does raise the issue of whether it's appropriate to subsidise a competitor."
Tasmanian Farmers and Graziers Association chief executive Jan Davis said MSC's offering would give some exporters an opportunity to break a monopoly enjoyed by the Port of Melbourne on products in and out of Tasmania.
