King Island shippers paying for port

King Island freight service users have repaid almost a third of the capital cost of TasPorts’ new freight model through levies.

It has been three years since TasPorts introduced a service via Devonport.

The introduction of the Devonport levy and the removal of direct Melbourne shipping sparked significant community and business backlash on King Island, with concerns over increased freight costs, reduced connectivity, and lack of consultation.

The impact was especially pronounced during last year’s drought, when logistical constraints hindered the transport of fodder and cattle.

In March 2022, TasPorts ended its direct Melbourne shipping service and introduced a transhipment model through Devonport.

A $2.4 million roll-on/roll-off barge ramp was constructed at Berth 5 West to support the shift, enabling TasPorts’ subsidiary, Bass Island Line, to operate directly between King Island and Devonport.

SeaRoad Shipping provides the onward freight connection to Melbourne. To fund the Devonport ramp, TasPorts applied a dedicated levy to King Island freight using the Devonport leg.

“As at April 30, 2025 TasPorts has recovered $772,000 through this mechanism and based on current volumes, it is anticipated the full recovery of the capital investment will take approximately eight years,” TasPorts CEO Anthony Donald said.

“That represents about 32 per cent of the capital cost and has been recovered over 39 per cent of the anticipated timeline.

The average recovery rate sits at about $20,865 per month, placing the levy just behind linear projections but still broadly on track, particularly given fluctuations in freight volumes.

Mr Donald said the model provided operational gains.

“This critical infrastructure upgrade enabled BIL to operate more efficiently and respond to customer needs with greater flexibility.”

"TasPorts remains committed to providing safe, reliable and sustainable shipping."