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The tourist train, The SteamRanger, has collided with a car on its public launch after a two-year restoration.
The crash happened at a train crossing on the Mount Compass Goolwa road at Currency Creek just after midday.
The driver of the car is being treated for a neck injury, while none of the 21-metre steam engine's passengers were hurt.
SteamRanger president Ben Greeneklee says an investigation into the crash will be done.
"We're disappointed and concerned, however we'll be investigating it in accordance with our rail safety obligations and assisting the police with their inquiries," he said.
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