Legislative Council, Tuesday 23 August 2022

Ms FORREST question to LEADER of the GOVERNMENT in the LEGISLATIVE COUNCIL, Mrs HISCUTT

With regard to shipping services for King Island –

1. What consideration or investigation has been undertaken in the last five (5) years by the Government or TasPorts regarding the possible transition to a private operator taking over the entire King Island shipping and freight task;

2. If any consideration or investigation has been undertaken in the last five (5) years:

a. Who has conducted the process;
b. Which if any companies have been directly approached; How many expressions of interest of other responses have been provided?

3. If no consideration or investigation has been undertaken by the Government or TasPorts in the last five (5) years:

a. Will the Government commence a process to engage potential private operators;
b. When does the Government intend to commence this work; and
c. What approach will be taken?

ANSWER:

Question l and 2

Firstly, it should be noted that that shipping and freight to and from King Island is an open market of which there are currently two participants – a private operator, Eastern Line, and TasPorts subsidiary, Bass Island Line.

In regard to considerations or investigations that TasPorts has undertaken of transitioning the Bass Island Line service to a private operator, I can advise that TasPorts undertook a market investigation and assessment of the BIL business model in late 2018, results of which were announced in 2019.

The purpose was to ensure BIL’s operations were as efficient as possible, and suitably servicing customers.

Potential Bass Strait operators were invited to submit indicative proposals to participate in the delivery of the BIL service.

The evaluation panel determined that none of the market participants sufficiently demonstrated their proposals were able to independently achieve an improved BIL service without ongoing involvement and support from TasPorts.

Question 3

As per the previous response, a market investigation and assessment has already been undertaken.