Freight cost 'cut' for farmers
but no fine for SeaLink

By DANIEL CLARKE
26/05/26

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Livestock farmers on Kangaroo Island will save up to $400,000 a year after the State Government secured a cut to freight costs as punishment for SeaLink not meeting the delivery date for its new ferry service.

 

SeaLink had flagged livestock freight would be charged at the same rate as dangerous goods once the new ferry service was in operation, which is 1.5 times the base rate.

 

In a statement released this afternoon, the Malinauskas Government said that it had renegotiated its Deed with SeaLink to enable the charge to be reduced to a multiplier of 1.2, the same as general freight. 

 

Given the increased livestock freight costs were yet to be implemented, the charges effectively stay the same. 

 

There was no mention of a fine for the company or compensation for island residents in the wake of last week's news that the two new ferries - already two years overdue - would be delayed another three months to September 23. The ‘Resident Saver Fares’ for vehicles and passengers implemented after last year’s delivery deadline was missed remain in place. 

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Minister for Infrastructure and Transport Joe Szakacs and Member for Mawson Jenni Mitton travelled to the island today to meet with KI Council and other stakeholders to announce the news. 

 

“In a really big win, we’ve been able to cut the freight rate for livestock,” Minister Szakacs said.

 

“When it comes to the KI ferry service, the people of the island and their businesses will always be number one for our government, and this outcome demonstrates that.

 

“The State Government remains committed to holding the operator to account in its obligations to the people and businesses of Kangaroo Island who rely on this crucial service.”

 

AGKI Chair Peter Cooper welcomed the news, saying it was a “massive win for island producers but this is how the contract should have been written in the first place”. 

 

“There was no consultation of that contract when it was being written so we were disappointed in the beginning that things like this weren’t ironed out before they were brought out,” Cooper said.

 

“This is a contract that was written for 25 years and the Minister has changed the contract very much in our favour. Potentially SeaLink aren’t very pleased about it but it’s what needed to happen.

 

“We think the livestock costs would have increased in the vicinity of $300-400,000 a year for island producers.”

 

Mayor Michael Pengilly said he would like “to get rid of the stock multiplier all together but it’s still a substantial drop on where it was”.

 

He said the second new ferry Ruwi, which is still being constructed in an Indonesian shipyard, “should hit the water very soon”. 

 

“The new boat hasn’t been launched but it’s on the verge of that," Mayor Pengilly said. "As soon as it has done all its trials that the builders have got to do up there, then it will come (to Adelaide).

 

“We’re all adamant that the boats not be late starting, particularly with the livestock season coming in Spring. Both SeaLink and the Department of Transport are adamant that changeover of the berthing facilities can be done in three days.”

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Minister Szakacs said "we now have clarity as to when we can expect these services to start".

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"Next week we should have been welcoming two new Kangaroo Island ferries to Penneshaw, so it’s disappointing that this moment is still a few months away," he said.

 

Cooper said island producers were “fairly concerned for wide loads on the new boats and we’re just keen to see them on the water and to start using them to try and work out how much of the rumours are real, and what we can and can’t do”. 

 

“There has been some talk about height in particular," he said. "SeaLink claim that there’s no troubles and they’ll still be able to manage the same freight they always have been and we’d just like to see that happening day in day out to know that we can.

 

“I think SeaLink are starting to understand that for us it’s really about communication. These new boats are coming on and there’s going to be a plan but everyone needs to be brought along with it. The more communication we can have the easier the changeover to the new vessels is going to be.” 

 

Member for Mawson Jenni Mitton said it was “really pleasing to be on KI today, sharing this news with the people who will benefit from the reduction we’ve secured”.

 

“One of the first calls I made after I was elected was to the incoming Transport Minister to ask for assurances around the new ferry service, which I’d heard through rumours would be delayed,” Mitton said.

 

“He confirmed the rumours were on the money, but said that we would work together to ensure a positive outcome for islanders out of the frustration.”