Freight capacity causing headaches for Tasmanian producers and businesses

Tasmania Invest managing director Sarah Hirst told a Legislative Council dairy industry inquiry that freight issues were holding up business growth and investment in Tasmania.

“My client is taking five tankers of fresh milk to Melbourne every day but can’t get space on boats. They looked at all opportunities through any port to take five tankers but can’t get them to Victoria,” Ms Hirst said.

This business plans to expand operations in Tasmania and is looking to invest $450 million in a milk processing facility.

Once at capacity they will “fill half a boat every day,” which is expected to happen within in the next few years, Ms Hirst said.

The freight capacity issue is bigger than those experienced by one business owner, but the problem is expected to ease once the Searoad Mersey II is back in commission after being repaired in Sydney, Ms Hirst said.

“Anecdotally, we’ve heard up to 15 trailer loads have been left on the wharf each day,” she said.

Tasmanian Farm and Graziers Association (TFGA) chief executive officer Peter Skillern said freight continued to be a problem for the state’s producers.

“The TFGA still has ongoing concerns about the adequacy of capacity in freight within Tasmania and also, primarily, across Bass Strait,” Mr Skillern said.

“Freight concerns getting produce off the island, but also getting products on to the island. A constraint on freight is a constraint on the whole economy,” he said.

Infrastructure minister Rene Hidding said, “an efficient freight system in Tasmania is critical to supporting economic growth and job creation,” when launching the Tasmanian Integrated Freight Strategy in April 2016.

The strategy committed to working with businesses on supply chain needs and developing a road and rail plan for the Burnie to Hobart freight corridor.

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