An AUD 33m ($25.09m) memorandum of understanding (MoU) between the Tasmanian government and Swire has now expired, ABC reported.

The government had earlier announced an AUD 203m extension to the Tasmanian Freight Equalisation Scheme (TFES), a move that cast doubt on the deal with Swire.

State infrastructure minister Rene Hidding confirmed the Swire deal was off in a statement.

"Obviously, the recent decision by the federal government to inject an additional AUD 203m into the TFES will have a substantial impact on freight equalisation and the cost of exporting freight from Tasmania," he said.

"Given