Adelaide’s train services have returned to public hands, with tram network to follow

A historic deal to return Adelaide’s train network to public hands hopes to bolster security for South Australian commuters.

Adelaide’s train networks have returned to public hands. Picture: Tricia Watkinson

Adelaide’s train network is back in public hands under a landmark deal, which promises to bolster safety for commuters.

The State Government revealed on Sunday that Adelaide’s train operations were now back under public control, after being held by private operator Keolis Downer.

The decision fulfils a major election promise made by the Malinuaskas government.

Former Liberal Premier Steven Marshall sold off the rail services four years ago, touting the move as a cost-saving measure for South Australia.

But new figures revealed the 12-year deal inked by the previous government would cost taxpayers around $122m.

The State Government will not need to pay a termination fee of up to $94m to Keolis Downer.

Premier Peter Malinauskas said the move was a win for South Australians.

“This is a historic day for South Australia,” Mr Malinauskas said.

“Bringing a privatised service back into public hands is a remarkable achievement, and one that will benefit South Australians each and every day.

“We were very clear when the former Marshall administration abandoned its pledge for no privatisations that, if elected, a Labor Government would bring these services back into public ownership.

“Today we honour that promise – and in so doing we are creating a lasting public transport legacy of rail services owned and operated by and for South Australians.”

Premier Peter Malinauskas said it was historic day for South Australia. Picture Dean Martin

More than 30 passenger service assistants will be hired to help bolster security on trains, as a part of the deal.

The state’s tram network is expected to follow suit in July.

Transport Minister Tom Koutsantonis said the move would help improve services for South Australians.

“People want essential services to be operated and owned by the State Government and that’s what we’ve delivered, as promised,” Mr Koutsantonis said.

“This commitment is not a reflection of Keolis Downer’s capability as a service provider and we thank them for their co-operation throughout this process.

“However, the reality is, when you privatise a service, you pay for the private operator’s profit margin that’s built into the price for service.

“Taxpayer money should be reinvested to improve services. That is exactly what we’re doing – we’re putting people before profits to deliver a reliable, safer and secure service.”

The Opposition has ruled out sending the train network back to private owners, if elected.

Originally published as Adelaide’s train services have returned to public hands, with tram network to follow