THE port at Flinders Island, in Bass Strait, is "unsafe and dysfunctional", according to the director of shipper Furneaux Freight, Shannon Bayles.
Qube Ports has taken over stevedoring operations at Lady Barron, after Furneaux Freight revoked its agreement with Tasports in late September.
"The Lady Barron Port remains an unsafe and dysfunctional working environment - even after $1.6m of state government funding and additional funding allocated by the Flinders Council," Ms Bayles said.
"This is supported through an independent report completed on the Lady Barron Port by an OH&S specialist."
The company made the decision to revoke its stevedoring arrangement with Tasports, partly because of ongoing safety issues which were not rectified within the port redevelopment.
"Furneaux Freight persisted with both Tasports and the Flinders Council in trying to obtain a safe working environment within the port, which met all regulatory requirements for food handling, dangerous goods and forklift operations to no avail," Ms Bayles said.
Furneaux Freight had negotiated a 12 month contract with Qube Ports to conduct a supervisory role of stevedoring at the Lady Barron Port.
"This contract comes at considerable expense to Furneaux Freight that cannot be sustained within the current business model," Ms Bayles said.
From December 15, there would be a 2.5pc cost increase, on all freight rates, to sustain a viable shipping service to the island.
"Furneaux Freight remain committed to providing a reliable and cost effective shipping service to Flinders Island and endeavour to keep freight charges as low as possible while still allowing for a sustainable business model," Ms Bayles said.
"It is always Furneaux Freights last intention to pass onto out customers any additional costs imposed in providing a service to Flinders Island but due to the substandard port at Lady Barron we are left with no alternative.
"Unlike the other Ports in which we operate, Bridport & Port Welshpool, a stevedore licence is insisted upon by the Lady Barron Port owner – Tasports."The Liberal Government has a long-term plan to make Tasmania more attractive to investment and to create jobs.
Tasmania's Infrastructure Minister Rene Hidding has welcomed the agreement with Qube Ports.
"Two months ago I said I would ensure that Flinders Island would continue to have a sustainable, safe and efficient freight service in the longer term, " Mr Hidding said
"This has now been delivered."
A further 12 month extension option, to allow Qube to continue stevedoring operations at the port, had also been agreed.
"I recently visited Flinders Island where I met with members of the local council and the shipping group, livestock agents and farmers," Mr Hidding said.
"I assured them that the Government would not leave the community stranded without a proper service.
"Primary producers on the island told me they were very vulnerable to an interruption in shipping services, particularly in the middle of an extended dry period when movements to mainland Tasmania are at their peak."
The manager of Markarana Grazing, one of the island's biggest livestock producers, welcomed the decision.
Darren Grace said it meant island residents and producers now knew were they stood, for another 12 months.
"We can look forward to the next 12 months, where we have secure service," Mr Grace said.
The decision by Furneaux to pull out of stevedoring operations had "brought things to a head," he said.
Issues with improvements which still needed to be carried out at the port had been brought up during negotiations with Qube.
"Certain things been pointed out to Tasports, they will have to address some of those issues and explain why some of those things haven’t been done in the initial upgrade," he said.
Tasports has not yet responded to Stock and Land.
