West Coast Railway was formed in 1993 when the Kennett Liberal Government offered long-distance country rail services previously run by the government-owned operator V/Line to private operators. Their bid was entered in February 1993 and was announced as the successful tender on April 30 the same year. The initial franchise was for 8 years, being later extended for 3 more. Their head office in Geelong was opened on July 12, 1993 and the company officially came into existence on August 1.While several rail services were replaced by road coach services, West Coast Railway successfully tendered to maintain the South-West region's rail service, thus - in the words of the company - "giving new life to a region serviced by rail for over 100 years". During the 11 years of WCR operation of the line, patronage increased by 20%. The first rail service under WCR operated on September 19 when V/Line locomotive N466 City of Warrnambool hauled the 17.00 up Warrnambool to Melbourne service.
In 2001, the two directors of the company brought a 50% share in Tranz Scenic, the national passenger operator in New Zealand.However, the investment was not successful, and the share was sold in 2003 to Toll NZ.
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