Background
The Victorian Railways of the 1930s and 1940s had become run down, with years of economic depression, the war effort, and material shortages resulting in a general decline. At the time it was expected that a railway the size of VR should have been building 25 locomotives, 30 to 40 carriages, and 500 wagons per year, as well as relaying 60 miles of track. In reality VR were only able to build an average of 4 locomotives and 200 wagons per year, and these gains had been counteracted by long overdue scrappings.
When World War II hit, the VR had no chance to rebuild, with resources being directed towards the war effort, only patch up work and essential maintenance was possible. Furthermore, passenger travel had been restricted by government, then cut even further due to fuel shortages, with trains taking longer and buffet carriages removed. Despite this, in 1948-49 country passenger business was up 76 percent on that of 1938-39, which were considered the best pre war years, and suburban traffic was up 22 percent. In addition, goods traffic was up by 53 percent, with more goods being handled than any of the war years.
After the end of the war, rebuilding work begun in a small way, with new steel, air-conditioned carriages built, as well as new sleeping-cars for The Overland. However, the growth in patronage was due to a lack of alternate transport, with wartime petrol rationing still in force. Passengers were unimpressed with the service provided, and were looking for someone to blame. In 1949 a review of the Victorian Railways was commissioned by transport minister Kent Hughes, and was carried out by British Railways Chief Executive John Elliot. The report found much to admire in the management and staff, but criticised the run-down locomotives, rolling stock, and track and predicted a "final breakdown of rail transport" in ten years if nothing was done. The ideas of the report were not new, the Victorian Railways had been making plans for modernisation of their operations, but did not have the money or political will to implement them.
Read more about this topic: Operation Phoenix (railway)
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