- by Len Lean
- The Guardian
- Issue #2162
Electric Adelaide tram no. 264 from c. 1925. Photo: Peripitus – wikimedia.org (CC BY-SA 3.0)
The South Australian government announced a deal in 2023 to scrap the privatisation of Adelaide train and tram services. The Labor state government had signed an agreement with train operator Keolis Downer Adelaide and tram operator Torrens Connect to hand back operations by 2025.
In 1993 a new Liberal State government was elected in South Australia. Elected in a landslide, the Liberal Party captured all but ten of the forty seven seats in the Lower House.
The swing was regarded as voters punishing the Labor government for its lack of vigilance which had allowed the state owned bank to lose over $3.15 billion. The Liberals’ transport policy provided that Adelaide’s public transport system would be put to tender. Within six months the bill had become the Passenger Transport Act and by July 1994 a passenger Transport Board was in place. The government had undertaken the most extensive competitive contracting of former government-run services.
The Labor party had promised at the 2022 state election to reverse the former Liberal government’s privatised tram service in 2020 and train services in 2021. The contracts ($2.14 billion to run train services) were for the initial eight years with an option to extend but the Labor premier had said that a take–it-or-leave-it “partnership” deal was offered to Keolis Downer Adelaide Company. The alternative was a vote in Parliament that there be no compensation.
As part of the partnership deal, Keolis Downer would continue to maintain the train fleet and infrastructure until 2035. That would cost taxpayers $30.5 million for the first two years but the cost of the deal from 2025-35 remains hidden because of “commercial in confidence.”
That’s a legal term that refers to any information a business wants to keep secret. This could be anything from future product designs and marketing plans to sensitive financial information. By keeping this information confidential, businesses can make sure they stay ahead of the competition. It’s also a handy way for privatising governments to avoid talking about what they’re doing with taxpayers’ money.
The public’s right to know – freedom of information – open government is sometimes waived to enable governments to hide bad financial arrangements between government and the private sector thus avoiding adverse publicity.
As of 31 August 2025, Adelaide tram operations are back in public control, completing the state government’s commitment to safeguard our essential rail services for future generations.
Tram networks are to be upgraded including safer and more reliable journeys through the removal of three level crossings, and better connection between the suburbs on either side of the Glenelg tram line. There is also a commitment to have safer and more accessible tram stops with improved access and lighting.
It is essential for all essential services in South Australia to be owned and operated by the state government. Privatisation has cost workers a lot. After the privatisation of ETSA (Electricity Trust of South Australia), electricity prices have now gone through the roof.
