Future of The Overland rail service in doubt after State Government pulls funding

The future of The Overland train service has been thrown into doubt after the State Government axed funding after the end of this year.

The Overland will be scrapped by the end of December unless it finds new financial backing.

The future of The Overland train service has been thrown into doubt after the State Government axed funding after the end of this year.

Great Southern Rail confirmed on Wednesday evening that unless the service, which operates between Adelaide and Melbourne, finds financial backing before the end of December it will be scrapped.

The decision was based on low passenger numbers across the service as well as doubts about its long term financial viability.

Great Southern Rail managing director Steve Kernaghan said that the Victorian Government had contributed their portion of funding to extend the life of the service for 15 months from August.

“Great Southern Rail has been notified this week that the South Australian Government has decided not to extend its financial support of The Overland beyond this year,” Mr Kernaghan said.

“The Overland has consistently required support from both South Australian and Victorian Governments for its long-term commercial viability.

“This support has heavily subsidised significant operational costs to ensure affordability for commuters.

“The Victorian Government recommitted its support to The Overland in August for an additional 15 months.

“Our intention is to advise regular patrons what is happening with the service so they can make informed travel decisions for the future.”

Overland Express train leaving the station, 1995.

Transport Minister Stephan Knoll said it was a “difficult decision” to scrap the tax payer subsidy for the Overland service.

“In challenging fiscal times, the State Government needs to carefully prioritise its funding to maximise benefits for all South Australians,” Mr Knoll said.

“This particular service has a relatively low patronage, particularly within regional South Australia, therefore required a taxpayer subsidy to remain viable.

“There are many other transport options for South Australians, tourists and these regional communities including various coach and air services.

“I appreciate this will be disappointing for those who use The Overland however the Marshall Government is prioritising funding towards regional projects that will benefit South Australia, such as the $750 million Regional Roads and Infrastructure Fund.”

Great Southern Rail is now searching for new opportunities to extend the service beyond December 2018.