THE head of the Tasmanian Logistics Committee says freight company Swire is still in the game for an international shipping link out of Bell Bay.
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The government promised the Singapore-based firm $33 million if it could establish a direct service to Asian ports in a memorandum of understanding that expires next week.
The recent decision by the federal government to expand the Tasmanian Freight Equalisation Scheme to export goods has put the viability of the link under a serious cloud.
But committee chairman Steve Henty said he believed Swire was still in the game, and was conducting market testing.
‘‘If there’s sufficient demand, they’ve said that they will still give it a go,’’ he said.
‘‘But they are looking for a long-term, viable option.’’
Earlier this month, the federal government announced that the TFES would be extended to goods going to international markets, with businesses able to claim rebates of $700 for each shipping container.
It’s understood that Swire is still clarifying how any new link would operate under the expanded scheme.
Mr Henty said it would be the best possible outcome for exporters if another international shipping service was established.
‘‘To have the choice provides competition and competition hopefully provides downward pressure on freight pricing,’’ he said.
‘‘From an exporter’s point of view, it’s icing on the cake.’’
The state government has committed to spending the funds on infrastructure if Swire opts out of setting up the service.
Swire could not be reached for comment.