Govt should sell TT-Line, assess viability of TasPorts: PC report

A Productivity Commission report has recommended the state government consider selling off state-owned freight and ferry operator TT-Line among a raft of recommendations in a report on shipping and freight in the state.

A Productivity Commission report has recommended the state government consider selling off state-owned freight and ferry operator TT-Line among a raft of recommendations in a report on shipping and freight in the state.

A PRODUCTIVITY Commission report has recommended the state government consider selling off state-owned freight and ferry operator TT-Line among a raft of recommendations in a report on shipping and freight in the state.

The Commission recommended the state government “articulate its underlying objectives in owning and operating a freight and passenger/vehicle service business and assess whether ownership of TT-Line is the most cost-effective way” to achieve competitiveness in the freight industry in the state.

The Commission has also outlined issues with the state’s port and rail service, saying the rail industry operated on a return only with long-haul runs, which the state did not have.

The Commission said rail in the state had been consistently operating at a loss.

In addition the Commission recommended the state government undertake an inquiry into the price structure in place at TasPorts to find out whether the price structure was efficient and cost reflective of individual ports.

“The Tasmanian Government should assess the commercial viability of TasPorts and potential changes to enhance its operation,” the report read.

“The assessment should include a consideration of alternative models for the provision of port infrastructure, including the feasibility of privatisation or long term leases to private operators.”
Source: Advocate