OCEANIA

DP Worlds Tasmanian port development in doubt

11 years ago

DP World’s plans to develop a $20 million container terminal at Tasmanias Port of Burnie are in jeopardy after the Senate voted down a proposed shipping bill to allow foreign vessels greater access to Australian ports.

An artist's impression of the DP World Burnie international container port Photo: DP World Australia

The new bill would have seen the Coastal Trading (Revitalising Australian Shipping) Act 2012 renamed The Coastal Trading Act 2015, in effect replacing a three tiered licensing system with a single permit allowing both national and foreign vessels access for 12 months.

Importantly, it would have allowed foreign vessels working at Oz ports for more than six months per year to pay foreign wages to their crew.

DP World has an exclusive two year MOU with Tasports which will expire late 2017. The operator told Port Strategy that it’s hoping for a change in legislation which will allow the project to proceed.

Brian Gillespie, chief corporate development officer, DP World told PS: “We are disappointed and a bit surprised by the votes against the proposed legislation from some Tasmanian Senators.”

“Unfortunately this will slow down our immediate plans for Burnie. We still believe that there is a strong economic and environmental case for improving sea freight from Tasmania to Australian and International ports. How else are we going to make Tasmanian exports price competitive and at the same time take 150,000 long distance truck journeys off the roads in mainland Australia?”

He added that design engineering work on Burnie will continue but the $30m order for cranes and equipment is on hold while the operator reviews the situation.