Australia's island state of Tasmania will be hit with a big increase in port fees from neighbouring state Victoria, despite months of negotiations, reported ABC News.

Under the Port of Melbourne's new tariff schedule, Tasmanian businesses will pay an extra US$10 million a year.

Some wharf fees will more than double.

Fees for containers will go up by $21 and car fees will jump by $12.

Tasmania's Infrastructure Minister David O'Byrne says the port has decided to impose lower charges than originally proposed, but he is extremely disappointed.

The new fees will apply from next month.

The increases follow a $75 million licence fee imposed on the Port of Melbourne by the Victorian Government.

Source: Cargonews Asia