Rent hike of 800 per cent at Port of Melbourne will affect 'everyone in Tasmania'

The State Government has "serious concerns" about a dramatic hike in rent by the Port of Melbourne which would have significant flow-on effects for Tasmania.

Stevedoring companies have reported Port of Melbourne Corporation asking for a rent hike of almost 800 per cent for companies using the wharves, making Melbourne the most expensive port in the world.

The Port of Melbourne is owned by the Victorian Government, but a process of privatising the port is underway.

Tasmanian Infrastructure Minister Rene Hidding said one quarter of Port of Melbourne's business comes from Tasmanian private and government shipping.

"The Tasmanian Government has a number of serious concerns in relation to the Victorian Government pump-priming the value of the Port of Melbourne in the lead-up to its privatisation, which will have an alarming effect on the Tasmanian economy through rising freight costs on Bass Strait," he said.

"We are absolutely entitled to demand that they abandon this reckless market activity."

Mr Hidding said he had sought a meeting with the Victorian Shipping Minister Luke Donnellan to discuss the issue.

Wayne Johnson from the Tasmanian Farmers and Graziers Association said the price hike would affect all of Tasmania.

"Everyone in Tasmania, the freight that comes in effects everyone on this island," he said.

"It's not just agriculture, it is every little bit that comes in and out of Tasmania goes pretty much predominantly through the Port of Melbourne."

He said other options would have to be considered.

"We will have to look, as a state, at sending our freight through a different port," he said.

"For the sake of calling it extortion it is unbelievable that they would think of increasing rates by 800 per cent."

Steve Henty from the Tasmanian Logistics Committee said that was not an option for everyone.

"The majority of Tasmanian exporters have no choice but to use the Port of Melbourne for their shipping requirements," he said.

He said Tasmanian exporters were already at a huge disadvantage.

"Any increase in these costs widens the gap and chokes competiveness for the state," he said.

"The current attributed cost to container handling is around the $3 mark, this could blow it out to $80 per container."

He said that increase in cost would be passed on to the consumer.