This closed section of line has been converted into the 37 km long Port Fairy to Warrnambool Rail Trail.

For 11 years, from 19 September 1993 until 31 August 2004, the Melbourne to Warrnambool passenger service was run by the private West Coast Railway company.

[1][2] Freight services also run on the line, operated by Pacific National and, for a brief period, El Zorro to the WestVic container terminal, between Warrnambool and Dennington.

The standard of engineering was called into question as the light timber bridges required extra maintenance and had a short life span, while the decision to build only a single track resulted in slow and infrequent trains.

[8] A branch line was built from Koroit (between Warrnambool and Port Fairy) to Hamilton (on the Ararat – Portland railway), via Penshurst, in 1890.

A 2 ft 6 in (762 mm) narrow gauge branch was also opened from Colac to Beech Forest in 1902, principally to carry timber, and was extended to Weeaproniah and Crowes in 1911.

In July 2012, the Minister for Public Transport announced that a new crossing loop would be constructed on the line at Warncoort, between Birregurra and Colac.

The line was later extended south-west, to Winchelsea in 1876, Colac in 1877, Camperdown in 1883, Terang in 1877, and finally Warrnambool, Dennington, and Port Fairy in 1890.

Whilst the track beyond Waurn Ponds station is mostly single with some passing loops, many duplication projects have occurred along the Geelong section of the line.