Victoria will get a new transport super-agency within months under a departmental shake-up.
VicRoads and Public Transport Victoria will combine under a standalone Department of Transport, Premier Daniel Andrews confirmed on Thursday.
He said it's a move that will improve efficiency, but the opposition have labelled it nothing more than a rebadging exercise designed to help the government hide project cost blowouts.
"We don't run a road, rail and tram network separately, we run a transport network and that's why we have to make sure the way the government organised itself supports that," Mr Andrews told reporters.
"An integrated, seamless approach where we can get the best outcomes, get the most stuff built, the most things done."
Unions were told of the merger yesterday and staff are expected to be given more details on Thursday.
No job losses are expected from among the 3000 workers at VicRoads and several hundred at PTV.
"In the main you're talking about different parts of government that have operated in far too separate a way," Mr Andrews said.
"By joining them up it's not about duplicating it's about making sure that each part of the system knows what is going on and can be part of an integrated set of works."
The opposition's public transport spokesman David Davis was cynical about the move, and said he expected job losses to be announced once the federal election is done.
"Who for a moment thinks that failing bureaucracies being merged into one super bureaucracy will deliver anything for commuters?" Mr Davis asked.
"It will be millions of dollars to rebadge these organisations. One failing bureaucracy with a new sticker is not going to fix the problems in Victoria, it's not going to fix the trains that are skipping, it's not going to fix the trains that are running late."
The Public Transport Users Association was cautious about the announcement.
"The danger is this move is seen as bringing transport planning under more direct political control, at a time when people are keen to take the politics out of planning decisions," president Dr Tony Morton said.
The Greens welcomed the merger.
"This is a step in the right direction, but now the Andrews government must commit to a long-term transport plan so new projects are funded based on need," spokesman Sam Hibbins said in a statement.
The new department structure will be implemented from July 1.
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