A proposed merger between besieged TasPorts and TT-Line has been flagged by the Tasmanian government.

Premier Jeremy Rockliff confirmed on Sunday the government would explore the merger and combine it with TasRail to make it a “unified government entity”.

Describing the proposal as a “landmark move”, Mr Rockliff said it would enhance the efficiency and sustainability of Tasmania’s transport and logistics services.

“We have seen growing concerns around the performance, accountability, and co-ordination of some of our government businesses,” Mr Rockliff said. 

“Recent issues have highlighted the need for a more strategic, long-term approach to managing Tasmania’s critical infrastructure.

“We also require a greater customer focus and better service delivery.”

TT-line, trading as Spirit of Tasmania, is a government owned business that offers ferry services between the Apple Isle and the mainland since 1993. 

TasPorts is a state-owned company responsible for eleven Tasmanian ports and the Devonport Airport.

TasRail is a state operated company that manages mailine trainlines across the state since 2009, it only operates freight services.

Mr Rockliff said the possible merger could ensure a more integrated, cost-effective, and responsive system for the people of Tasmania.

The Tasmanian Government will undertake a detailed restructuring analysis to assess the proposal and ensure a smooth transition.

The analysis will also identify any potential regulatory, legal and competition issues. 

It’s unknown how long the analysis will take or when the proposed merger could take place. 

Mr Rockliff is expected to hold a press conference on Sunday. 

This post was originally published on Michael West.