The Passenger Transport Executive on Merseyside was one of four initially set up under the Transport Act, 1968. Following the formation of the Executive in November 1969, formal vesting of the assets of the former Liverpool, Birkenhead and Wallasey municipal undertaking in the P.T.E. took place on 1st December, 1969. From this date the P.T.E. assumed responsibility for a fleet of 1300 buses and seven ferry vehicles which where were, at the time, the only maritime interests of any P.T.E.

To control its operation the P.T.E. was split into three traffic divisions. The former Birkenhead and Wallasey operations, including the Mersey ferries, became the responsibility of the Wirral Division. Liverpool was broken into two divisions, North and South, which were based on those adopted latterly by Liverpool City Transport extended to the P.T.E. boundary. Subsequently Southport and St. Helens were made Districts within the existing North and South Division respectively.