COASTAL shipping reforms are just one Senate crossbencher's vote away from failing.
South Australian independent Nick Xenophon last night made clear he would vote against the Turnbull Government's reforms.
That put him in the same camp as Labor, the Greens and Tasmanian crossbencher Jacqui Lambie.
If any of the other crossbenchers - Dio Wang, Glenn Lazarus, John Madigan and Ricky Muir - also oppose the bill, it will fail.
Senators Muir and Madigan have previously expressed concern about the reforms, which would open up coastal shipping routes to foreign flagged vessels and, according to opponents, smash the Australian shipping industry.
A $20-30 million international freight terminal development in Burnie and lower freight costs for Tasmanian exporters hang on the result, with proponent DP World Australia saying it will need the reforms passed for the project to proceed.
Freight giant China Shipping has expressed interest in adding Burnie to its international routes if the terminal goes ahead.
Like Senator Lambie, Senator Xenophon is not against shipping reform as such, but does not accept the government's plan.
''It will basically gut Australian shipping,'' Senator Xenophon told the Senate.
He acknowledged Australian shipping must become more efficient, but said the government's plan was not the way to achieve that.
He urged Infrastructure Minister Warren Truss to continue consulting with industry, workers and business.
''We need to get reforms through,'' Senator Xenophon said.
Debate is scheduled to continue in the Senate today.
The government's main options appear to be to:
*Take the bill to a vote now, let it fail, negotiate with crossbenchers based on their expressed concerns and try again next year;
*pull the bill for now and work on compromise with crossbenchers during the summer; or
*ditch the reforms and let the crossbench, Labor and the Greens wear the criticism from business, possible with an eye to trying again after the next election (assuming a