Premier Jeremy Rockliff confirmed on Sunday the government would explore the merger and combine it with TasRail to make it a "unified government entity".
The news comes after cost blowouts, finger pointing between state-owned companies and slow infrastructure builds that have plagued the delivery of two new Spirit of Tasmania ships.
Last month, the state government announced a new terminal in Devonport, needed for the new vessels to berth, wouldn't be ready until February 2027, more than two years behind schedule.
As a result, a number of TT-Line staff have either been sacked or quit.
Michael Ferguson also quit as deputy premier and moved to the backbench in October, following scrutiny over the project and the possibility he wouldn't survive a no-confidence vote in parliament.
On Sunday, describing the merger proposal as a "landmark move", Mr Rockliff said it would enhance the efficiency and sustainability of Tasmania's transport and logistics services.
Jeremy Rockliff says a merger could ensure a more integrated, cost-effective, and responsive system. (Rob Blakers/AAP PHOTOS)
"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 has offered 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 train lines and has operated freight-only services across the state since 2009.
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.
Labor leader Dean Winter said reforms of government businesses were needed and called on the premier to commit to them being legislated before the end of the year.
But Mr Winter said Labor would fight any plans to sell off government businesses.
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