Tasmania's public bus company Metro will also run passenger ferries on the River Derwent under a State Government plan.

The Tasmanian Government will introduce legislation to allow Metro to run a ferry service between Bellerive on Hobart's eastern shore and Sullivans Cove.

There is no date on when a ferry service will be operational but the Government has committed $2 million for a study into what is needed to run it.

The plan includes two new terminals on both the Hobart waterfront and on the eastern shore.

Infrastructure Minister Jeremy Rockliff said a ferry service would help ease traffic congestion in Hobart's city and inner suburbs, which can often cause delays for several hours at a time.

"We've allocated $2 million for a scoping study to support Metro to develop the service, some of that will also include money for TasPorts for infrastructure planning," Mr Rockliff said.

"I'm not going to be held to time frames other than to say today we have come good on our election commitment to table legislation to allow metro to operate ferries."

The Liberals' plan released during the election campaign included new terminals on the waterfront. ( Supplied: Liberal Party )

Metro chief executive Megan Morse said another mode of public transport in Hobart was key to easing congestion.

Ferries operated in the river after the Tasman Bridge disaster in 1975. ( ABC News )

"We see public transport as a critical part of the solution to some of the congestion difficulties that Hobart's experienced," she said.

Ferry services were part of a pre-election transport policy aimed at encouraging people to use public transport rather than cars.

It is estimated 83 per cent of commuters drive to work, a higher proportion than in any other Australian capital.

The potential for Hobart's road network to break under pressure was realised as far out as the 1960s, with a number of measures taken to relieve the morning and afternoon peaks, and a ferry service often being suggested.

As recently as 2017, a proposal for a ferry network was put to the Government and Hobart City Council by Bob Clifford, the businessman who made his fortune running a temporary service in the wake of the 1975 Tasman Bridge collapse.

Hobart has had a peak hour traffic problem for years. ( ABC News: Ros Lehman )

Hobart Lord Mayor Ron Christie welcomed the news and said for "many, many years now we've been talking about a ferry service … and I know there's a very strong community support".

Alderman Christie said he and the Mayor of Clarence, Doug Chipman, had sent a letter to Mr Rockliff requesting a meeting to discuss the initiative and clarify whether there would be any cost borne by councils for a pedestrian walkway or tunnel providing access to the ferry terminal.

He said he had no doubt the reintroduction of ferries would have an effect on congestion.

"Anything that can alleviate those 17,000 cars coming into Hobart between 7:00am and 9:00am is going to assist," Alderman Christie said.

Mr Chipman said the plan "wouldn't be possible unless Metro were a partner in the process".

He said the service would be welcomed by tourists and visitors to Hobart and hopefully would lead to more bus services throughout the eastern shore.

"We would expect to see Metro bus services coming through Bellerive, so people could make the choice of hopping on the bus and getting on the ferry."

Expert slams 'cargo cult' mentality

Transport economist and urban geographer Bob Cotgrove has criticised the latest plan and doubts it will ease congestion.

Bob Cotgrove says there are better ways of dealing with Hobart's congestion. ( ABC News: Natalie Whiting )

"I question the whole idea of the Government though, there's a cargo cult mentality," he said.

"They think 'we'll put ferries on the Derwent and that will save thousands of vehicles'. There's no evidence for that at all.

"All the evidence shows that you can improve public transport services but it has virtually no effect on road traffic.

"That's because people who use cars do so for very good reasons, they have to connect a number of different activities during a limited time budget that they have for the day."

Mr Cotgrove criticised Metro's bus service.

"We shouldn't forget that Metro gets a subsidy of over $40 million a year and its main business model is to ferry empty seats around Hobart because, you know, there are more empty seats being carried by Metro than there are passengers," he said.

"The Government is speculating, it's sort of saying 'oh let's put on ferries and see what happens'. That's not the way to plan for transport."

Mr Cotgrove said the city will eventually need a western bypass.

Metro declined to comment on the concerns voiced by Mr Cotgrove.