Significance
The expansion of the railway in the late 1870s helped to develop Gippsland. It enabled milk from western Gippsland to be sold fresh into Melbourne while the dairy industry of East Gippsland provided cheese and butter. It also enabled development of west Gippsland's market gardening and orcharding industry for sale in Melbourne markets.
It also encouraged the development of a tourism industry notably at Lakes Entrance. It did however end coastal shipping traffic and the use of Sale and Bairnsdale as ports.
In the 1920s, the Gippsland railway played an important role in developing the mining of lignite coal and the development of the Latrobe Valley for power generation primarily serving Melbourne and Victoria. This saw the development of industry in towns such as Yallourn, Morwell, Traralgon, Moe, Warragul and Drouin.
The development of the Gippsland Railway helped fuel the Melbourne land boom in the 1870s. The original departure point for the railway was Oakleigh with the line connecting Oakleigh and Melbourne not built until 1879. The Victorian railways bought land in Oakleigh for use as workshops. Oakleigh became a centre of what was known as "railway fever" as developers developed and marketed houses close to rail lines between Oakleigh and other suburbs for use of workers travelling to and from their job. At the height of the land boom in 1888, land sales were being held two or three times a week in the district. The collapse of the land boom in 1889 eventually contributed to banking collapses in 1893 and the major depression of the 1890s.
The Gippsland railway remains a significant passenger corridor on the V/Line network although its use for freight business has now declined to only one major customer, being Australian Paper's export traffic from Maryvale
Read more about this topic: Orbost Railway Line
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