REVEALED: State government pitches merger for TT-Line, TasPorts and TasRail

Premier Jeremy Rockliff says he’s ‘still angry’ about the TT-Line port infrastructure delays, as he doubles down on a commitment to reform the state’s GBEs.

Premier Jeremy Rockliff and Deputy Premier Guy Barnett announced the government will consider the proposed merger of TasPorts, TT-Line and TasRail into a unified government-owned entity. Picture: Stephanie Dalton

UPDATE: A riled up Premier Jeremy Rockliff has doubled down on his commitment to overhaul the state’s Government Business Enterprises, mulling over a merger of major businesses after the Spirits fiasco.

Mr Rockliff said the “much-needed” reform would see TasPorts, TT-Line and TasRail merged into a unified company, creating a more integrated, cost-effective business and also address the companies’ shortcomings highlighted by major failings in recent years.

“Today is a day where there is serious reform on the table to ensure that our government business in Tasmania focuses on Tasmania, first and foremost,” he said.

“We are proposing the most significant reforms for generations, particularly putting on the table a merger of TasRail, TasPorts, and TT-Line into one focused entity to ensure that what happened with the spirits will never happen again.”

TCCI Board Member Ian Jones, Premier Jeremy Rockliff and Deputy Premier Guy Barnett announced the government will consider the proposed merger of TasPorts, TT-Line and TasRail into a unified government-owned entity. Picture: Stephanie Dalton

Fresh on the fallout that TasPorts and TT-Line had bungled the project to build port infrastructure in Devonport, Mr Rockliff said he was angry it had to come to this.

“As I’ve clearly stated before, the matters concerning TT-Line and the birthing arrangements have made me very angry,” he said.

“I’m still angry about it. Tasmanians are angry about it, and Tasmanians want reform.

“They want accountability and they want government businesses that have a ‘Team Tasmania’ approach, that work together in the best interests of Tasmania, economic growth, jobs, and have a very clear objective and customer focus.”

TCCI board member Ian Jones welcomed the government’s plan and said the TCCI had been calling on the government to reform GBEs for months.

“We have been advocating for the last 12 months for review, so we look forward to being able to submit our input and we’ hoping for a great outcome,” Mr Jones said.

EARLIER: After decades of transport and infrastructure setbacks, the Rockliff government has announced it will explore a potential merger of TasPorts, TT-Line, and TasRail.

The proposed government-owned entity aims to end years of infighting and underperformance among the agencies — “shortcomings” the government has grown weary of defending.

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

TasPorts and TT-Line have been central to the lengthy Spirit of Tasmania ferries saga, with both government-owned companies seemingly at fault for significant delays in delivering two new Bass Strait ferries and the associated port infrastructure.

TT-Line operator Spirit of Tasmania. Picture: Rauma Marine Constructions

The cost of the ferry project has soared to nearly $1bn, with opposition leader Dean Winter labelling it “the biggest infrastructure fiasco” in Tasmania’s history.

The arrival of the ferries — built in Finland — remains years away.

One vessel is still under construction, while the other is headed to Scotland for extended storage.

A parliamentary inquiry into the delays has revealed a strained relationship between the government and the companies responsible, with longstanding communication issues further hindering progress.

The infighting among state-owned businesses has been longstanding, with TT-Line officials claiming that TasPorts denied access to essential infrastructure needed to advance works on the new ferry berth.

TasPorts, however, disputed this, alleging that TT-Line failed to meet the suggested timelines.

TasRail train at the Port of Burnie. PICTURE CHRIS KIDD

TasRail, meanwhile, has experienced cost blowouts of up to 80 per cent on its Burnie upgrades and earlier this year suffered a collision that temporarily shut down the Hobart-Burnie main rail line — a vital freight route.

The recent resignations of TT-Line CEO Bernard Dwyer in September and chairman Michael Grainger in August intensified calls from the opposition for Treasurer Michael Ferguson to resign from cabinet.

Mr Ferguson stepped down in October, facing a potential vote of no confidence.

Premier Rockliff indicated that an initial analysis will determine if the merger would deliver; economic growth, enhance efficiency, improve customer service, and ensure long-term sustainability. The analysis will also assess any regulatory, legal, and competition concerns tied to the merger.

“This is not just about fixing current issues — it’s about building a system that is robust, future-proof, and capable of supporting Tasmania’s growing economy,” Mr Rockliff said, adding that a united “Team Tasmania” approach was now the goal for the state.

The merger is one part of a wider plan to fix government businesses with other governance reforms proposed including;

UPDATING the principal objectives of the businesses to put Tasmania’s economic growth first;

PUTTING the Tasmanian people at the top of all organisational charts;

MINIMUM of 50 per cent of board members are Tasmanian;

LEGISLATIVELY require that the two Shareholding Ministers’ roles cannot be undertaken by the same person;

MANDATING board renewal by limiting the number of years directors and chairs can serve;

INTRODUCING gateway reviews and project assurance processes for large projects.

The government has not responded to questions regarding when the initial merger analysis is expected to report back.

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Originally published as REVEALED: State government pitches merger for TT-Line, TasPorts and TasRail