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The future of the Overland train between Adelaide and Melbourne is on shaky ground with the South Australian Government axing any future funding for the service.
Great Southern Rail managing director Steve Kernaghan said losing the Government's $330,000 subsidy meant it was unlikely the 130-year-old Overland service would operate past December 31.
"If any portion of that funding doesn't come through it's just not commercially viable to run it," Mr Kernaghan said.
"It's not a small amount of money, but we think it's a reasonable amount of money, but we understand these are decisions that need to be made by the South Australian and Victorian governments at both their ends."
Great Southern Rail has relied on a funding agreement between the South Australian and Victorian governments to fund the service for the past 20 years.
The Victorian Government recommitted in August to fund its share of about $1 million per year for a further 15 months.
A Victorian Government spokeswoman said it would work with "South Australia and Great Southern Rail on future service models".
The Overland runs twice a week between Adelaide and Melbourne, carrying about 17,000 passengers per year.
It also stops in Murray Bridge, Bordertown, Nhill, Dimboola, Horsham, Stawell, Ararat and Geelong.
Trips take 10.5 hours compared with 1.5 hours flying.
SA Transport Minister Stephan Knoll said the money was needed elsewhere.
"We've seen fewer and fewer people use it and we need to make sure we're doing what we can to put the budget back in the black," Mr Knoll said.
This article first appeared on www.abc.net.au
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