 VR and the New South Wales Government Railways introduced a new daylight connecting service between Melbourne and Sydney, the "Intercapital Daylight", and the Parlor Car was removed from the "Spirit" and transferred to the new day train.At the same time, VR introduced open, "saloon" style Z type carriages which later began to supplement the original compartment carriages of 1937 in the "Spirit" consist.From 1957 onwards the "Spirit of Progress" was hauled by the new S class diesel locomotives which inherited the class designation from the previous steam locomotives.