Train and tram services will return to public hands, with the Malinauskas Labor Government signing a deal that will ensure a smooth transition back to state ownership during this term of government.

Local Member of Parliament, Mr Tony Piccolo said the announcement means that the State Labor Government has delivered on a major election pledge.

“After the former Liberal government sold off South Australia’s rail operations, Labor made a major election pledge to bring the service back to public hands,” said Mr Piccolo.

“We said we would do it, and we have,” said Mr Piccolo, who has welcomed the announcement.

“The parties have signed a deal that will see operational functions for Adelaide’s trains returned to public hands within two years.”

“ The agreement will see train operator Keolis Downer Adelaide and tram operator Torrens Connect (AMO) hand back operational functions by January 2025 and July 2025 respectively, ensuring a safe and efficient transition.”

Mr Piccolo said consistent with the Government’s previous commitments, no early break fee will be payable to the operators for transitioning services back to Government.

“There is no requirement under these arrangements to pay termination costs to the operators - who indicated that under an immediate termination scenario they would seek immediate compensation costs totalling more than $94 million.”

Mr Piccolo said there is also good news on the passenger safety front.

“The train deal will also see customer service and security management functions returned to government control by June 2027, under an agreement that will see additional compliance and security staff integrated into the network, offsetting cuts instituted as part of the former Liberal government’s original deal.

“By working collaboratively with Keolis Downer and achieving this agreement means that passengers will not notice any impacts to services during the transition period, with Adelaide Metro operations continuing to run as normal.

The former Marshall government privatised tram services in 2020 and train services in 2021 under separate contracts, each for an initial eight-year term with an option to extend to 10 and 12 years, respectively.

Mr Piccolo said the train privatisation had reached the “end of the line” and has now been consigned to history.