I have informed the King Island Council today that the preferred proponent for King Island Shipping, Port and Coastal Marine Services, has reported difficulties in final procurement of a ship to meet its proposed January 2017 start to operations.
This effectively terminates the joint venture that was recently announced between Port and Coastal Marine Services and SeaRoad to service the Island’s shipping needs.
The Hodgman Government remains firmly committed to providing a timely and viable freight service to King Island.
The Government has now activated its contingency plans to deliver on that commitment.
Negotiations are continuing with Port and Coastal Marine Services.
Discussions are also underway with SeaRoad, which has previously indicated a desire to continue its service to King Island.
The King Island freight task represents a viable business opportunity and I am confident that a good outcome can be announced soon.
I will keep the King Island community informed of all developments as the Government moves forward with plans for a new service.