Following the continued delays experienced by the ongoing acquisition of two new Spirit of Tasmania vessels, Tasmanian premier Jeremy Rockliff has announced the state government’s intention to combine TasPorts, TT-Line and TasRail into a unified government-owned entity.
The potential move is hoped to improve the efficiency and sustainability of Tasmania’s transport and logistics services. All three government-owned companies currently operate independently of each other, but the proposed merger is a key pillar of the recently released Government Business Government Reform plan.
“We have seen growing concerns around the performance, accountability and coordination of some of our government businesses,” Rockliff says.
“Recent issues have highlighted the need for a more strategic, long-term approach to managing Tasmania’s critical infrastructure.
“That’s why we will consider pursuing this merger – to streamline operations, reduce inefficiencies, and deliver better outcomes for Tasmanian businesses, industries and everyday Tasmanians.”
The government says the evaluation of the proposed merger will determine if the move will deliver:
- Stronger economic growth: A more coordinated approach to freight, port operations, and passenger transport to support Tasmania’s industries and create new opportunities for trade and investment.
- Better customer service: Improving the customer service experience with a Team Tasmania approach to client service.
- Improved efficiency: Centralising administrative and operational functions based in North-West Tasmania to reduce duplication and allow for better allocation of resources.
- Sustainability: A unified focus on optimising rail, ferry, and port services to ensure the long-term sustainability of Tasmania’s transport sector.
“Consideration of this proposed merger will lay the foundation for a ‘Team Tasmania’ approach that will help reach our state’s potential,” Rockliff says.
“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.”
It was recently announced the Spirit of Tasmania’s newest vessel – Spirit IV – will be docked in Scotland for the foreseeable future due to the lack of appropriate port infrastructure to house it.
Upgrades to the Devonport berth in which it would operate were initially projected to finish in April 2024, however the likely completion date is now 2027.
Also included in the plan to merge TasPorts, TT-Line and TasRail are a new limitation on the number of years directors and chairs can serve, the introduction of gateway reviews and project assurance processes for large projects, and a legislative requirement to Shareholding Ministers’ roles cannot be undertaken by the same person.
A full copy of the Government Business Governance Reform – Draft Plan can be found here.
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