Exports at risk in Spirit decisions

TT-Line and government must consult on Geelong port call,

TASMANIANS can be proud of the amazing results achieved by publicly owned business TT-Line. Since 1985, TT-Line has been a vital transport lifeline to the mainland. While many people associate TT-Line and its famous Spirit of Tasmania vessels with tourists, grey nomads and caravans, it is just as important to our export businesses.

Government figures show one in five containers that cross Bass Strait sail on-board the Spirits. TT-Line figures suggest the number of containers carried each year is well in excess of 100,000. With 99 per cent of Tasmania’s freight being moved by sea and TT-Line having a 20 per cent share of that market, the decisions the Government makes regarding TT-Line are vitally important to the state’s business community.

Last year VicPorts indicated it was considering increasing the cost for TTLine to access Station Pier, which has been the northern terminal for TT-Line since it began operations 35 years ago. This week Premier Gutwein confirmed that Geelong was being considered as an option should Station Pier access negotiations break down with the Victorian Government.

Obviously TT-Line and the Tasmanian Government have an obligation to do what’s in Tasmania’s best interests. An astronomical increase in fees clearly would be to the detriment of TT-Line and result in higher costs being passed to passengers and freight customers. However, when weighing up decisions like this, it is critical TT-Line and the Government consult widely with freight customers and the local business community and consider the impact of any changes on Tasmanian exporters.

In recent years, exporters have invested significantly to develop “just-in-time” supply lines to Melbourne, especially for premium fresh produce. Under current arrangements, producers know they can pack their produce in the morning, drop it off in Devonport in the afternoon and it will be delivered to customers first thing the next day. Product can go from a paddock in Smithton to plate in a Smith St restaurant in less than a day in a cost-effective way that ensures freshness and quality.

Moving the Spirit of Tasmania birth to Geelong could potentially affect those vital supply arrangements with customers and that is a significant concern to the business community.

It also remains to be seen what the impact on passenger numbers would be if the terminal was shifted to Geelong. Tourism businesses, especially in the North, would want to see detailed modelling before any changes are made.

Some businesses I’ve spoken to this week are concerned, but see potential upsides. If a move to Geelong reduced the cost of TT-Line’s freight service it may reduce cost of accessing mainland markets, even though a Geelong berth would impact land transport costs. Others have said being able to avoid moving freight through Melbourne’s roads in peak times may be an advantage.

The Government and TTLine must tread carefully. Businesses, especially exportexposed businesses, have always been affected by the tyranny of distance associated with being an island and any changes to shipping will have an impact.

Businesses need certainty and a voice in the decisionmaking process. Any surprises and the Government risks damaging business confidence.

While the Victorian Government sold off most of its port operations a few years ago, it retained ownership of Station Pier. This is effectively a case of it trying to increase prices paid by the Tasmanian Government to access Station Pier. I hope Premier Gutwein has picked up the phone to talk to Premier Andrews. Given the Tasmanian Labor Party has been vocal on this issue it would be helpful if it took a Team Tasmania approach and reached out to their comrades in Victoria.