Grain trains will be a thing of the past on the Eyre Peninsula from June 1, with Viterra announcing it will instead transport all grain using trucks - a decision they say will put an extra 12,000 trucks on the road each year.
Transport, Infrastructure and Local Government Minister Stephan Knoll said the move was a commercial decision by Viterra and rail operator Genesee and Wyoming Australia.
"The economic viability of this rail network has been in doubt for a long period of time," he said.
"The condition of the rail infrastructure and the restrictions it places on operations have added to the costs for doing business for Viterra such that it is simply no longer efficient to move grain by rail.
"It is important to keep in mind this is a very aged network only capable of low axle loads."
Mr Knoll said the state government had been in discussions with the federal government about the added pressure on the road system and were "confident we are close to delivering a solution"
"We also look forward to engaging with Port Lincoln Council as we refine options going forward," he said.
Read more industry reaction here.
