This paper aims to analyse the challenges facing the privatisation of the King Island ferry service in the Australian island state of Tasmania. As has been well documented, the socio-economic impact of a sustainable and reliable ferry service is imperative to the survival and prosperity of the King Island community. After the departure of the SeaRoad Mersey service in 2016, the Tasmanian Government was required to step in to provide a transport service, through TasPorts subsidiary Bass Island Line. The findings of this paper have revealed that after many iterative improvements, the service is now adequately meeting the needs of its customers.

However, Bass Island Line since its incorporation has been operating at a loss, with research suggesting that it will continue to do so into the foreseeable future. The advantage of private-sector involvement is understood to increase financial and operational efficiencies, however, the current freight market and stagnant economic outlook for King Island were discovered to be deterring investment for potential investors. The result is a service that will likely require continued Government support, whether it is privatised or not, this paper suggested that for the service to be sustainable into the future, it is imperative the Tasmanian Government has continued stakeholder collaboration. This leaves the Tasmanian Government in a position to deliver on its mission of maximising the social benefit to the community of King Island. However, it is well understood that public-sector governance is more often than not inefficient; not to mention it deviates from the trend toward privatisation of ports and maritime services.