ALP weighs into freight debate

TASMANIA’S struggling exporters will receive another $40 million to help reduce the cost of sending goods over Bass Strait and overseas if the Rudd Government is re-elected.

Most of it — $37.5 million — has been earmarked as grants for projects to grow freight volumes and modernise land-based logistics to reduce costs.

Exporters have been hamstrung since 2011 when the state’s only international shipping service left Bell Bay.

Deputy Prime Minister Anthony Albanese will unveil the Tasmanian Freight Package during a visit to Launceston this morning. It will be paid 50:50 by the Commonwealth and the State Government.

It is on top of the $20 million Canberra gave Tasmanian exporters last year to deal with the short-term pain of losing the direct shipping service.

Part of that package also went to improve container handling at Burnie port and to set up a Freight Logistics Co-ordination Team to work out longer-term solutions.

Mr Albanese said the package was a direct response to the interim recommendations made by the team and was backed up by spending on rail improvements in Tasmania and upgrades at Burnie and Bell Bay ports.

Mr Albanese said money would also be spent simplifying supply chains, using online tools to aggregate freight volumes and to reduce the transit of empty containers.

Premier Lara Giddings said the policy provided immediate assistance for exporters and a clear direction for Tasmania’s long-term freight needs.

Transport Minister David O’Byrne said the solution had been developed with the backing of Tasmanian exporters.

“It is the first time in a generation that work of this kind and significance has occurred and that is why industry has supported it,” he said.

The freight team’s work would continue, he said, with a focus on port specialisation and land transport.

A final report is expected by the end of the year.

Shipping goods across Bass Strait to Melbourne can eat up more than half of the cost of shipping to Asia and Tasmania has lost markets to New Zealand since the international service left.

Agricultural lobbyists say those markets could be clawed back, and new ones secured in China and Japan, if a new direct link to Asia were established through Singapore.

The Opposition Leader Tony Abbott has promised to implement a joint Productivity Commission and Australian Competition and Consumer Commission review of Tasmania’s shipping costs, the competitiveness of Tasmania”s freight industry structure and improving the equity and effectiveness of the Tasmanian Freight Equalisation and Bass Strait Passenger Vehicle Equalisation schemes.

The state Liberals have promised to underwrite a shipping link between Tasmania and Asia — a promise that represents a $33 million lifeline for Tasmanian exporters.

helen.kempton@news.com.au

ALP weighs into freight debate