Infrastructure Minister Tim Crookall says the best option for improving facilities for bus passengers in Douglas is to wait for Lord Street to been redeveloped.
In a report due to be laid before Tynwald during its June sitting, he says the Sea Terminal was considered as a bus interchange but was too difficult to get buses into while allowing passengers through to ferries.
Mr Crookall says testing is underway to see if it's viable to put a bus stop in front of the terminal.
But he concludes the best solution to providing better passenger facilities is to wait to see if a recently-announced redevelopment of Lord Street goes ahead and to build a bus station as part of that.
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