OK for China freight link

Direct cargo flights to Ningbo approved but plan relies on dairy farmer

DIRECT flights for hauling freight between Hobart and China have been approved by the Chinese government.

The flights would be a huge boost for exporters, says Tasmania’s top small business group.

However, the launch of the Boeing 767 freight service hinges on Chinese-owned Moon Lake Investments. The company plans for weekly exports of 50,000 litres of VAN Milk, which is produced at its Woolnorth VDL farms in the state’s North-West.

The flights were proposed in 2016 but hit a series of regulatory snags.

Now, Qantas has confirmed it is ready to start direct export flights, as it awaits the all clear from Moon Lake.

“Yes, we’ve got regulatory approval from the Chinese government to operate the freighter,’’ a Qantas spokesman said.

Moon Lake managing di- rector Sean Shwe said he had only been made aware this week Qantas had been given the approval, and the company was assessing its next move.

“Moon Lake has an existing contractual arrangement to fly fresh milk from Tullamarine but will be looking at how it might be able to work with Qantas,’’ Mr Shwe said.

The company currently exports about 10,000 litres of fresh Tasmanian milk weekly via Melbourne, as it builds its customer base in China.

Tasmanian Small Business Council executive officer Robert Mallett said a direct freight link would provide huge opportunities for many small exporters and reduce their costs.

“Every opportunity to go direct to the end user is a positive outcome for Tasmanian business,’’ Mr Mallett said.

He said the direct route would enable exporters to bypass the expense of first getting their product to Melbourne.

“It would encourage people to come from the mainland to set up businesses,’’ he said.

He cited fruit and seafood exporters as two potential big winners from a direct air link.

“There will be room for other goods, whether that’s honey and other not so perishable goods,’’ Mr Mallett said.

A spokesman said State Government representatives “continue to be part of discussions’’ between Moon Lake and Qantas.

“The granting of approvals for direct flights from Hobart to Ningbo is a welcome develop- ment and ensures we’ve moved another step forward towards establishing a direct freight link between Tasmania and China,’’ the spokesman said.

The spokesman cited figures showing a massive increase in the value of local exports to China.

Moon Lake made headlines in April this year after five Australian and New Zealand directors and the chief executive of VDL Farms resigned en masse over concerns about its restructure.