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Tasmania signs service agreement with Singapore's Swire Shipping

THE Tasmanian government has signed a memorandum of understanding with Singapore's Swire Shipping to launch a direct international container service to the Australian island state with US$28 million in subsides set aside for the service over three years.

Tasmania's only international liner shipping connection is Swire's Asia-Pacific-Australasia multi-purpose and container service (APA) that links north and south east Asia to Papua New Guinea and Australia, with a monthly call at Tasmania's northern port of Bell Bay.

It is unclear whether the projected international route would be based on an enhanced APA service or implemented through the creation of a completely new operation, said Alphaliner.

Tasmania is connected to the world mostly through ro-ro and ferry services shuttling between either Burnie, Devonport or Bell Bay and Melbourne, where ferried containers can be relayed to/from the rest of the world through connections in the SE Asia hubs of Singapore, Tanjung Pelepas and Port Kelang.

Swire established direct calls into Tasmania in early 2013 with its APA service, to provide the Bell Bay Aluminium factory with an international shipping service, filling a gap left by the termination of direct calls at the port by the SE Asia-Australia 'Triple A' service in spring 2011.

Swire deploys three 2,000-TEU vessels on its APA service with a port rotation of: Shanghai, Busan, Kaohsiung, Ho Chi Minh, Sri Racha, Singapore (Jurong), Port Moresby, Brisbane, Newcastle, Melbourne, Bell Bay, Kaohsiung, Busan and back to Shanghai.

"We recognise that there are significant challenges to the implementation of a direct, international container service to and from Tasmania," said Swire country manager Steve Clark.

"We look forward to working closely with all key stakeholders, including importers and exporters, in Tasmania to explore opportunities to provide innovative, sustainable shipping solutions for our customers."

Tasmania's main industry bodies have opposed the Tasmanian Liberal government's move to grant subsidies to Swire for the provision of direct international services and are petitioning the state government to push the federal government to extend freight subsidies instead.