Operation Phoenix (railway)

During the 1930s and 1940s, the Victorian Railways had deteriorated significantly due to years of economic depression, the demands of the war effort, and material shortages, leading to a general decline.

It was anticipated that a railway the size of VR should have been constructing 25 locomotives, 30 to 40 carriages, and 500 wagons annually, in addition to relaying 60 miles of track.

Additionally, passenger travel was constrained by government restrictions and further curtailed due to fuel shortages, resulting in longer train journeys and the removal of buffet carriages.

[1] However, despite these challenges, in 1948-49, country passenger business witnessed a 76 percent increase compared to the levels of 1938–39, which were considered the peak pre-war years.

[3] 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.

[1] The major components for the mainline diesel electric locomotives were to be imported from the United States, dependent on the allocation of foreign exchange funds from the federal government.

[3] The remainder of the new rolling stock was constructed by the VR's own workshops, including 20 of the "N class" steam engines, 14 new air-conditioned passenger cars, and 2 new suburban trains.