Sea Highway

A container ship in the Port of Melbourne

The Sea Highway is an Australian colloquialism and figurative shipping route used to describe the sea lines of communication between the state of Victoria on the Australian mainland and island state of Tasmania across the Bass Strait.

Since the mid 1970s, there have been measures taken by the Australian Government to formalise and integrate the Sea Highway into the nation's National Highway network as a means to ensure equal transport opportunities and economic integration across the entire country.

Background

See also: History of tariffs in Australia, Tasmanian Freight Equalisation Scheme, and Bass Strait Passenger Vehicle Equalisation Scheme

The Princess of Tasmania in 1958

As an island, Tasmania heavily relies on maritime trade to sustain its communities and economy, with a dependency on interstate shipping that is two and a half times greater than any other Australian state.

Before federation, the Colony of Tasmania depended on intercolonial tariffs for revenue. However, post-federation, only the Commonwealth could impose tariffs, and only on overseas goods. During the 1898 referendum, Tasmania’s Premier, Edward Braddon, fought to ensure continued tariff revenue for the colony. The referendum failed in the Colony of New South Wales, leading to a 'secret' Premiers' conference where amendments were agreed upon. These amendments, known as the "Braddon Clause," became Section 87 of the Constitution of Australia, enabling the return of revenue from customs and excise to the states.

The term "Sea Highway" was being used colloquially to describe the merchant shipping route by the early 20th century. The premise of the "Sea Highway" became popularised following the advent of the MS Princess of Tasmania ferry services departing the Port of Melbourne. The MS Princess of Tasmania was the largest roll-on/roll-off passenger ship in the southern hemisphere at its launch in the 1950s and greatly enhanced Tasmania's popularity as a tourism destination.

With over 99% of Tasmania’s freight by volume moved by sea, the federal government introduced the Tasmanian Freight Equalisation Scheme in 1976 to assist subsiding shipping costs. The Bass Strait Passenger Vehicle Equalisation Scheme was implemented in 1996 to further subsidise passenger shipping costs.

Port of Burnie in 2008

Shipping goods to and from Tasmania involves additional costs compared to road or rail transport on the mainland. These costs include fuel, freight charges, and the need for specialised transport infrastructure like sea ports and ferries. Additionally, Tasmania's smaller population and economy mean there is less demand for goods and services compared to larger states. This lower demand can lead to higher per-unit costs for goods and services due to less bulk purchasing and production.

As Australia's National Highway System is federally funded, except for the sea route to Tasmania, advocates for the Sea Highway seek for its formal recognition as part of the National Highway based on transport equity, aiming to enhance sea connections between Tasmania and mainland Australia. Similar to land highways that connect Australian regions, such as the Eyre Highway or Hume Highway, the Sea Highway requires considerable federal support to provide reliable, affordable services crucial for Tasmania’s economic activities and smooth Bass Strait transportation.

Sources

• "Call made for Tasmanian sea highway". Australasian Business Intelligence. COMTEX News Network, Inc. 12 February 2008. ISSN 1320-6680.
• "Sea highway lobby steps up campaign". Australasian Business Intelligence. COMTEX News Network, Inc: 1008232i5704. 20 August 2001. ISSN 1320-6680.
• BTE Monitoring Report Number 3 – 1998/99 (PDF) (Report). Bureau of Transport Economics. 1 April 2000. Archived from the original (PDF) on 30 June 2024.
• National Sea Highway Committee (30 June 1999), Tasmanian State Government has an unprecedented opportunity to cost a national highway connection to Tasmania, retrieved 5 August 2024
• Plowman, Peter (2004). Ferry to Tasmania: A Short History. Dural: Rosenberg Publishing. ISBN 1-877058-27-0.