TASPORTS and Strait Link have finalised an agreement that will see the Bass Strait operator maintain its port of Burnie base for up to 30 years.
The companies announced a non-binding Heads of Agreement earlier this year and have now converted that to what they describe as a milestone agreement.
The new agreement will see Strait Link transition to a contemporary lease and pricing model in line with TasPorts’ current Schedule of Port Charges, and in turn support future infrastructure investment in the port.
TasPorts CEO, Anthony Donald, said the new 10-year lease agreement, which includes two 10-year options to extend, has been the result of positive negotiations resulting in the signing of a Heads of Agreement commitment earlier this year.
“This long-term lease provides certainty for local workers, industry and regional communities, and reaffirms the Port of Burnie’s position as one of Australia’s most important freight gateways,” Mr Donald said.
As part of the negotiations, TasPorts will undertake a package of significant capital maintenance works, including remediation of the wharf and seawall, maintenance of wharf furniture, fenders and bollards.
Strait Link CEO Geoff Gruebner, said "Strait Link is proud to be a critical contributor to jobs and investment in Tasmania, with many of our 1,100 employees living and working in Burnie and the surrounding area.
"This Port of Burnie lease agreement ensures reliable freight services between Tasmania and mainland Australia for the long-term, providing stability for our customers, people and commercial partners.”
Strait Link, the former Toll Shipping, was acquired as part of Allegro Funds’ buyout of Toll Global Express – now Team Global Express – from Japan Post in September 2021, but held as a separate company. In April this year TGE sold its Tasmanian transport business into Strait Link Australia Holdings, leading to speculation at the time that Allegro was positioning the combined business for sale.
Strait Link operates the twin ro-ros Tasmanian Achiever II and Victorian Reliance II between Melbourne’s Webb Dock and Burnie, six nights a week, supported by comprehensive landside logistics services across Tasmania and mainland Australia.
"Strait Link's dedicated Bass Strait service provides the shipping frequency and reliability that Tasmanian exporters and importers depend on,” Mr Gruebner said.
"Working with TasPorts, we have the opportunity to continue investing in new operational efficiencies and infrastructure improvements to meet the state's increasing landside and blue water needs.”
Tasmania’s Minister for Infrastructure and Transport, Kerry Vincent, said this new agreement backs in the entire state.
“By securing this vital 30-year agreement, we are working together to move our state forward,” Minister Vincent said.
“This outcome provides certainty for workers, local industry, the wider Burnie community and of course everyone who relies on our freight network here in Tasmania.
“I want to take this opportunity today to congratulate Strait Link and TasPorts on reaching this long-term commercial agreement which can only bring significant benefits to Tasmania,” Minister Vincent said.
The Burnie-Melbourne service was initiated by Brambles Shipping in 1983, using the small ro-ro Challenger B, later supplemented by Gute, with both replaced by a pair of Stena ro-ros and then the purpose-built Tasmanian Achiever and Victorian Reliance, later lengthened.
Brambles Shipping was sold to the Toll Group in 2002 and in 2017 the current custom-designed pair were introduced to the service; the previous vessels now operate for a MSC subsidiary in the Mediterranean.