The appointment of new operators for Melbourne's train and tram networks will not bring about major service improvements unless the State Government invests more money, a peak transport users group says.

Public Transport Users Association president Daniel Bowen said Connex had become a scapegoat for the networks' failures, which were mainly due to a lack of Government infrastructure investment.

"I think realistically it would have been political suicide for the Government to give Connex the contract back again, whether it's their fault or not, they've been the fall guy for the rail system,'' Mr Bowen said.

End of the line for Connex

Connex and Yarra Trams are on their way out as the state government announces new rail operators for Melbourne.

Connex was this morning stripped of its contract to operate the network, with Hong Kong-backed company Metro Trains Melbourne to take its place.

The city's trams will also have a new operator with Keolis Downer EDI ousting the incumbent Yarra Trams as the Government's preferred tenderer.

The fresh contracts will begin in December, with the new operators offered an initial eight-year term, with an option to extend for a further seven years.

Mr Bowen said he feared the handover could result in a change of brands with few service benefits unless the Government fixed the train network's underlying problems.

"The operators need to beware because they'll playing with the cards they're given which is a lot of infrastructure problems (and) a lack of investment in the fleet to reduce overcrowding so they're going to be facing those sorts of issues,'' Mr Bowen said.

Opposition public transport spokesman Terry Mulder said Public Transport Minister Lynne Kosky should be the one getting the axe.

"Changing the operators of Melbourne's rail and tram system changes little,'' he said.

"The only meaningful change will be if Minister Kosky goes.

"It is Minister Kosky's fault, not Connex's, that 340,000 weekday rail commuters who each make a return trip are constantly late.''

The decision to oust Connex is likely to be warmly greeted by train passengers who have become increasingly infuriated with late, overcrowded and cancelled services across the network.

May was the fifth month in a row that Melbourne trains did not meet punctuality targets with almost one in 10 failing to arrive at their destination on time.

Connex this year had $11 million wiped from its revenue by the Government after 2.8 per cent of all train services were cancelled in the first months of the year.

Asked if the tender decision was a condemnation of Connex, Mr Brumby said it "wasn't helpful to look back", but he admitted Connex's record showed that in some areas "obviously their performance could have improved''.

Ms Kosky, a regular target of commuter fury, said MTM would deliver improved reliability and fewer cancellations for Melbourne's train passengers.

She said the change in operators would not affect current train and tram employees, who would be transferred to the new companies.

Ms Kosky said the Brumby Government was investing in more tracks, more trains and trams through the $38 billion Victorian Transport Plan.

MTM is a joint venture between Hong Kong's MTR Corporation Ltd, Australian companies John Holland Melbourne Rail Franchise Pty Ltd and United Group Rail Services Ltd. MTR also operates the London Overground rail service.

The new contract will include a customer service regime, offering incentives for MTM to improve customer service announcements, cleanliness, graffiti removal and increased personal safety on the rail network.

The contract will also include a 50 per cent increase in funding for rail maintenance. Continued…