Local infrastructure minister Rene Hidding told reporters Furneaux would cease operations from 22 September due to a commercial dispute with TasPorts.

“The government is advised that the dispute is in relation to non-conformances identified through audits into safety and dangerous goods handling that were ordered by TasPorts at Lady Barron Port,” Hidding added.

The aim is to put a contingency service in place to support the island’s short-term needs, before trying to find a permanent solution.