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Cuts continued to the rail network, with larger centralised silos in the north western area of the state, and replacement of traditional safeworking systems by systems that required no local staff saw further stations de-manned.The 1990s saw costs further reduced on the rail network.There were 185 locomotives in this class and they were Victorian Railway's main passenger locomotive until the arrival of the diesel electric B class in 1952.Despite the World War I, significant extensions of rail lines were carried out, particularly in the wheat growing areas in the north west and west.Passenger services on Melbourne's suburban rail network are operated by Metro Trains Melbourne with electric multiple units, and services to regional Victoria by V/Line with diesel trains.Freight services are operated by Aurizon (interstate), Pacific National and SCT Logistics (interstate and intrastate), and Qube Logistics and Trans Volution (intrastate).
New locomotive were also introduced, with the G and N classes enabling the retirement of many of the 1st generation diesels.
Country passenger services saw the last of the non-air-conditioned wooden bodied passenger cars withdrawn from service in 1986, replaced by new "H" set carriages.
Trials were also carried out for further upgrades, with locomotive A85 re-geared for 160 km/h operation in a series of test runs between Glenorchy and Lubeck in the state's west in July 1986.
V/Line Freight was sold to Freight Victoria in 1999, followed by National Express taking over Bayside Trains and V/Line Passenger in 2000, with Connex Melbourne taking over Hillside Trains.
Victorian Premier Steve Bracks negotiated a premature end to the "under-rail" Victorian country Broad Gauge network lease just minutes before the caretaker mode began before the state election of November 2006. In May 2008 Premier John Brumby arranged a 45-year lease to the Australian Rail Track Corporation of the single track Seymour-Albury section.
In 2017 the State Government under Premier Daniel Andrews initiated work on the Regional Rail Revival program, which allocated $1.75 billion to upgrade Victoria's regional railways and provide more reliable and frequent passenger services.