A Flinders Island port on the Bass Strait has been dubbed “unsafe” and “dysfunctional” by the company that formerly ran stevedoring operations.

Furneaux Freight gave up its stevedoring role at the Lady Barron port in September, and the director of the shipping firm has now given a glimpse of the reason why.

“The Lady Barron Port remains an unsafe and dysfunctional working environment - even after $1.6m of state government funding and additional funding allocated by the Flinders Council,” Ms Bayles told Fairfax Media outlet Stock & Land.

“This is supported through an independent report completed on the Lady Barron Port by an OH&S specialist.”

The company handed in its stevedoring arrangement with Tasports due to the ongoing safety issues, which it says were not rectified during recent port redevelopments.

It has now agreed to a 12 month contract that will see Qube Ports take over the supervisory role of stevedoring at Lady Barron.

But the deal is expense, and Furneaux says that from December 15 there will be a 2.5pc cost increase on all freight to keep the shipping service going.

“Due to the substandard port at Lady Barron we are left with no alternative,” Ms Bayles said.

“Unlike the other Ports in which we operate, Bridport & Port Welshpool, a stevedore licence is insisted upon by the Lady Barron Port owner – Tasports.”

Tasmania's Infrastructure Minister and representatives of the cattle industry says the 12 month deal will give some short-term assurance to exporters, while they wait for Tasports to address the issues once again.