The Australian state report into shipping and freight highlighted the weakness of Tasmania's economy and said less emphasis should be placed on subsidy schemes.

Ports and rail interests could also be sold.

The Tasmanian Freight Equalisation Scheme, which has been in operation since 1976, has cost AUD 2bn ($1.88bn) so far and will cost another AUD 2bn over the next 15 years, the commission found.

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