However, the latter system rejected the design as unsuitable, so that unit was sold to the Victorian Railways and used for construction trains on the Albury NSW to Melbourne standard gauge line.

[4][5] The engines were initially rostered on local passenger services to Werribee and trialled on Bacchus Marsh runs, but with the low speed limit of 40 mph (65 km/h) and relatively little power, they were unable to keep to the timetable to the latter.

However, the cab profile made visibility a problem in yards, and engine crews had to lean out the side to observe shunting instructions.

Common failures included seized transmissions, oil leaking onto the shunters' steps creating a slip hazard, and failed engine blocks.

[9] The class was generally allocated to Ballarat, Geelong and Melbourne for short shunting trips, and one each at Ararat, Bendigo and Seymour, explicitly for yard work only.

7101 was returned on 21 June 1961 and sold to Victorian Railways, who used the locomotive from 4 July on the construction of the North East standard gauge line between Albury and Melbourne.