Mildura passenger trains just $22m away: new cost breakdown

The Victorian Government has resisted returning passenger trains to Mildura. Now the full breakdown of the cost – and whether it could pay its own way – can be revealed.

Costings for the return of trains to Mildura have been published by the Parliamentary Budget Office. Picture: NCA NewsWire / David Crosling

Returning passenger train services to Mildura could be done for $22 million in upfront costs and potentially have a minimal ongoing budget impact, an analysis has found.

The Parliamentary Budget Office was asked to prepare costings for setting up a shuttle service between Mildura and Maryborough that would connect with Melbourne services.

Unlike other regional cities, Mildura is not connected to Melbourne by passenger trains.

A previous service was axed in 1993 under the Kennett Government and a promise to restart them by the Bracks Government wasn’t fulfilled.

The budget office’s costings considered a single train, converted to run on standard gauge, running three times per week.

The initial $22.2 million spend would include upgrading stations in Ouyen, Woomelang, Birchip, Donald and St Arnaud for passenger use and minor upgrades at Mildura and Maryborough.

By 2030-31, the budget was set to be impacted by expenses of $7.3 million to operate and maintain the new services.

Fares from the new services were estimated to generate revenue of $8.7 million over that time.

However, the expenses estimate included savings from an assumption subsidies to the Overland train to Adelaide would be cut.

The Victorian Government contributes $3.8 million a year to the Overland service after the South Australian Government pulled its funding.

It means the annual cost for a Mildura shuttle without being offset by savings could be in the vicinity of $3.5 million.

Liberal Democrats MP Tim Quilty requested the costings, which were prepared on the basis of last November’s budget.

It was assumed services would start in July 2023 and be operated by V/Line, with an N-class locomotive and N-type carriages.

The costings also worked off the train travelling at existing maximum speeds.

Member for Mildura Ali Cupper has advocated the shuttle option, arguing it can be pitched to the tourist market, where speeds are less of a factor.

But the Victorian Government wasn’t buying the suggestion trains could be run without further track upgrades.

A government spokesperson rejected the budget office’s costings.

“The cost of returning passenger services to Mildura would be many times higher than this estimation suggests,” the spokesperson said.

“This estimation did not factor in the major upgrades to track, signalling and other infrastructure that would be required before passenger services could return between Maryborough and Mildura.”

Mildura Rural City Council is expecting to hand a regional transport study to the State Government this year, which will include exploring the need for trains.

Infrastructure Victoria did not recommend returning passenger trains to Mildura in its recent draft 30-year strategy.

When asked about the train push last year, a Victorian Government spokesperson talked up the number of coach services from Mildura.